Yes, you could create a model that tries to capture every last detail, but this is counter-productive in time-pressured case studies.In this case, yes, you have 5 days to complete and present this analysis, but your time is much better spent on data gathering and even calling industry experts, partners, suppliers, customers, and so on than it is on getting small details correct: In parts 2 – 5 of the case study, there will also be simplifications because of the lack of time (“5 days” is not much time when you’re already working full-time).There, you’ll get access to the step-by-step videos, more in-depth explanations, and new in-video quizzes so you can test yourself as you move along.No, I don’t have an exact ETA yet, but it will certainly be done much sooner than the 5-part case study here.The answer is no – because I’m only releasing part of the case study on M&I for free.We’ll be skipping over large portions of it, my explanations won’t be as detailed, and I won’t walk through everything step-by-step.
This one will be an example of a long-form case study, which means that the qualitative part and your presentation are just as important as the numbers. If you are new to modeling, you will not be able to follow along with everything here.
Unusual Assumptions and Sources & Uses You’ll see that the setup for these sections is somewhat unusual, mostly because different parties are contributing funds for the deal – it is not like a traditional LBO where it’s just investor equity from the PE firm plus debt, and where you can make a simple assumption for the percentage of each one.
As a result, we have to factor in the excess cash (repatriated from overseas), the cash and rollover equity from Michael Dell, and make sure that we don’t end up with a negative investor equity number by linking the debt percentages to the wrong number (i.e.
Oh, and Dell has not yet released the 10-K for its recently-ended fiscal year, nor has it released finalized deal terms…
so some of these numbers may shift around in the next parts.