Wednesday, April 4, 2012

ZEISBERGER Claudia, AGGARWAL Vikas A., PRAHL Michael
Chips on the Side (B): The Buy-Out 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 semiconductor division of Agilent. Case A focuses on the operational side of the transaction, Case B deals with the implementation of an appropriate financing and capital structure.

Pedagogical Objectives: To develop a high-level understanding of the workings of leveraged buy-outs. To discuss the risk- return relationship in PE and the interplay of financial and operational risks in the deal structuring process. To understand the trade-offs involved in different debt instruments and financing structures.