October 1, 2014 Leave a comment
- CSC contacted a number of private equity firms in the first step toward evaluating whether a leveraged buyout that would allow the company to make further adjustments outside of the scrutiny of Wall Street would be a good option.
- Though there are potential benefits associated with going private, even the exploration period can be risky as we all learned from Dell’s protracted 2013 leveraged buyout which put the company’s every flaw in the spotlight for months on end.
CSC has come a long way since the UK National Health Service (NHS) contract went off the rails and the shamed ITSP had to pay its client more than $1 billion for its botched job. Under the direction of current CSC President and CEO Mike Lawrie, the company implemented an extensive restructuring plan that includes some cost-cutting and some realignment of products. So when word hit the street that CSC was talking to private equity firms about a possible buyout, people took notice. After all, we are just a couple of years out from the point in time when industry watchers were speculating on whether CSC would sell itself to the highest bidder. Read more of this post