Monday, February 6, 2012

ZEISBERGER Claudia, AGGARWAL Vikas A., PRAHL Michael, SAWJIANY Swati
Chips on the Side (A): The Buyout of Avago Technologies
© 2012 INSEAD Case Study
Also available: Teaching Note

A consortium of private equity firms (KKR and Silver Lake Partners) is in the process of acquiring the semi-conductor division of Agilent. To prepare for the signing of the acquisition agreement and the subsequent transfer of ownership, the deal team is revisiting their investment thesis with respect to upsides and risks.

Pedagogical Objectives: To explore the complexities of a typical buy-out situation from the operational side. Specifically, what are the highest impact value creation levers and biggest risks, and how to mitigate them. To discuss why Agilent wanted to sell the business and why PE firms might be a better owner at the time of the transaction.