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When people think Dell (NASDAQ:DELL), it’s likely most of them think PC, and a number of other people might have massive leveraged buyout on the tips of their tongues, but there’s one thing a lot of people might not think: cloud-computing game-changer.
Dell’s current situation
After tablets and smartphones hit the scene, PC sales stopped doing so well. In the slump, the No. 3 computer maker, Dell, lost 40 percent of its market value after a peak last year. Now Dell is looking to change things up, add appeal, and fulfill the technology needs of corporations.
Unfortunately for Dell, big changes are tricky to make under the scrutiny of investors, so the company has been seeking a leveraged buyout, which could allow it to make mergers and acquisitions to turn the company around. However, considering Dell’s size, worth, and the average premiums paid on recent technology leveraged buyouts, Dell’s enterprise value could climb to over $22 billion. A company so big could prove hard to buy out.
For this reason, there are many who don’t think a leveraged buyout of Dell will ever happen, with one analyst at CreditSights estimating less than 50 percent odds. But the buyout firm Silver Lake Partners appears to be positioning itself for the buyout, and Dell’s 14-percent-stakeholder, founder Michael Dell, may also be pivotal in seeing that a deal goes through to take the company private…
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