A lesson from "Deal of the Century", about Michael Dell buying VMware

professional profile

August 11, 2022

by a professional from Northern Arizona University in Tucson, AZ, USA

Stories from Forbes article, "Deal of the Century", about Michael Dell buying VMware.

Somewhere in the middle of negotiations...

And at one point, the sellers asked, "well, Michael, do you have the money? "It's like, sixty seven billion dollars"

Jamie Dimon from JP Morgan just says, "yeah, they have the money."

What's the lesson of that story? Have your financing lined up or at the table. As you are deal flow prospecting simultaneously be lining up the capital. Don't wait until after LOI is signed.

You don't want to take your LOI to the bank and hear them say, "Congratulations, you will have a deal that won't work."

3
5
115
Replies
5
commentor profile
Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
^redacted‌ - I hope searchers are paying attention to your post, above. I see lots of wasted time and money by searchers re your topic. Brokers and sellers LOL.
commentor profile
Reply by a searcher
from University of Pennsylvania in Ambler, PA 19002, USA
Thanks Jon... good advice and love the story. Interesting and fun fact... The current value of Dell's equity in VMware (81%,) spun off last year ($41.36B) is greater than the market cap of Dell itself ($35.327B).
commentor profile
+3 more replies.
Join the discussion