Filing Flows › Dell Technologies (DELL) › Takeover & LBO
Is Dell Technologies (DELL) a takeover target?
A leveraged buyout at today's price plus 30% ($411.98 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $253.70 a share (−20% against today's $316.91). At $291.5B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect. Historically 2.5% of companies with its figures were bought within a year (0.5× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $411.98 | today's $316.91 plus 30% |
| × shares | 652.0 million | |
| = Equity value | $268.6B | |
| + Debt refinanced | $34.5B | |
| − Cash | $11.6B | |
| = Enterprise value | $291.5B | 16.9× EBITDA of $17.3B |
| Fees | $5.8B | 2% of the price |
| New debt | $95.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $202.2B | 68% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $163.3B | $18.7B | $7.3B | $4.9B | $90.2B |
| Year 2 | $174.3B | $19.9B | $6.9B | $6.1B | $84.1B |
| Year 3 | $183.9B | $21.0B | $6.4B | $7.3B | $76.8B |
| Year 4 | $191.7B | $21.9B | $5.9B | $8.6B | $68.2B |
| Year 5 | $197.5B | $22.6B | $5.2B | $9.7B | $58.5B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 13.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $299.8B | |
| − Debt left | $58.5B | |
| = Buyer's equity | $241.3B | |
| Money multiple | 1.19× | on $202.2B put in |
| Buyer's yearly return (IRR) | 3.6% |
Price against return
What the buyer makes at other premiums over today's $316.91; the IRR reaches 20% at $253.70 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $348.60 | 8.6% |
| 20% | $380.29 | 5.9% |
| 30% | $411.98 | 3.6% |
| 40% | $443.67 | 1.6% |
| 50% | $475.37 | −0.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $151.2B | |
| EBITDA, last 12 months | $17.3B | 11.4% of revenue |
| Depreciation and amortization | $3.0B | |
| Capital spending | $3.6B | |
| Debt | $34.5B | |
| Cash | $11.6B | |
| Share price | $316.91 | on Nov 6, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 18% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Dell Technologies would cost about $411.98 a share, $268.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $354.94 | $231.4B |
| Median | 30% | $411.98 | $268.6B |
| High end (a quarter paid more) | 31% | $415.15 | $270.7B |
The odds, from history
Historically 2.5% of companies with its figures were bought within a year (0.5× the average). Its figures put it in decile 2 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Dell Technologies' latest quarter
Dell Technologies, Q2 FY27: revenue $47.0B (+58% year over year), operating margin 11.5%, net earnings $4.1B, operating cash flow $2.2B. The chart follows the revenue to costs, profit and cash.
Questions
Is Dell Technologies being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Dell Technologies?
A leveraged buyout at today's price plus 30% ($411.98 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $253.70 a share (−20% against today's $316.91). At $291.5B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect.
What would a takeover of Dell Technologies cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Dell Technologies would cost about $411.98 a share, $268.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.