In January 2013, Dell's total capitalization as a publicly listed company was $23.5 billion. What was...
In January 2013, Dell's total capitalization as a publicly listed company was $23.5 billion. What was the total amount of Michael Dell's and Silver Lake Partners' initial management buyout offer around June 2013, and how much of this consisted of debt?
Homework Answers
Michael Dell,.purchased the Dell Inc. for $24.4 billion on June 2013. The deal would transform Dell Inc. from public listed to privately owned company. The buyout of Dell Inc. will be made by cash payment and equity realization and loans. The equity cash payment was made by equity management firm Silver lake partners. Out of total buyout deal, $2 billion was loans received from Microsoft Corporation and Banks. As a privately managed company, Dell Inc. will aggressively make its production and marketing strategies. Dell Inc. once market leader of personal computers now face still competition with other computer giants such as IBM, HP and Lenova. As a chief executive officer (CEO) of Dell, Michael Dell also held 16% shares of Dell Inc that he used in buyout of the company. The Microsoft loan would be returned in 10 years and it carries an interest rate of 7% per annum.
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In January 2013, Dell's total capitalization as a publicly
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