DELL (DELL) has been a company in trouble for many years. The PC market is shrinking and DELL has struggled to adapt in a world where computing is moving increasingly more mobile.
The company's founder and CEO, Michael Dell, has been working with Silver Lake Partners to buy the company and take it private. There are some very good reasons why Dell would do better as a private company.
The primary benefit of going private is that it will have a lot more freedom to focus on the future of the company. Dell needs to take a long and serious look at its future and it is going to have to make some tough decisions in order to reinvent itself. To make such changes, it will have to focus on the big picture instead of working to impress Wall Street every three months.
Big changes take big investments. When public companies make big investments in the future of the company, shareholders expect to see those investment pay off quickly. But quick is not always the best solution, and it is probably not the best option for Dell right now. The moves that it will have to make are going to take years to pay off, and being a privately held company will help it weather the next few years while it tries to implement the changes it needs.
There is one problem, which is that going private takes money, and lots of it, which is where a private equity investor, or perhaps Microsoft (MSFT) comes in.