Chips on the Side (B): The Buy-Out of Avago Technologies

Name: Chips on the Side (B): The Buy-Out of Avago Technologies (English version)
SKU: IN-S196

Prahl, Michael;Zeisberger, Claudia;Aggarwal, Vikas A.;Sawjiany, Swati

Product #:IN-S196

Supplier:INSEAD

Discipline:General Management

Details:Supplemental Case (PDF) • 9 pages • 2012-03-27 (Rev: 2020-07-15)

Subjects:

Private equity Business law Risk management

Industries:

Construction and engineering

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$4.62

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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. Please visit the dedicated case website http://cases.insead.edu/chips-on-the-side/ (copy and paste the url into a browser).

Learning 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.