By: John S. Morlu II, CPA
Going private is not theory. Some of the most famous companies in the world have done it—with very different results. Below are clear, real-world case studies.
Case Study 1: Dell Technologies (2013)
From Wall Street pressure to long-term rebuild
What happened
In 2013, Michael Dell partnered with Silver Lake to take Dell private in a $24.9 billion leveraged buyout. At the time, Dell was struggling:
- PC sales were declining
- Cloud and enterprise computing were reshaping IT
- Public investors were impatient
Dell’s stock price did not reflect management’s long-term strategy.
Why Dell went private
- Needed time to shift from PCs to enterprise, cloud, and services
- Quarterly earnings pressure blocked bold investment
- The founder wanted control to execute a transformation
What changed after going private
- Dell invested heavily in enterprise infrastructure
- Acquired EMC in 2016 (a massive, risky bet that was difficult under public-market pressure)
- Rebuilt margins and diversified revenue
Dell later returned to public markets in a much stronger position.
Lesson from Dell:Going private works best when leadership already knows the plan—and just needs time to execute it.
Case Study 2: Twitter / X (2022)
Speed, power, and the danger of leverage
What happened
In 2022, Elon Musk took Twitter private in a $44 billion deal—one of the most talked-about take-privates ever.
The deal included heavy debt, much of it placed on the company itself.
Why Twitter went private
- Musk wanted total control over product, speech rules, and culture
- He believed Twitter was mismanaged and inefficient
- Public governance slowed decision-making
What changed after going private
- Massive layoffs (over 70% of staff at peak cuts)
- Rapid product changes and rebranding to X
- Advertising revenue dropped sharply at first
- Debt payments became a constant pressure
Unlike Dell, Twitter/X did not go private to quietly rebuild—it went private to move fast and break things.
Lesson from Twitter/X: Going private gives power—but debt and speed can turn power into instability.
Case Study 3: Hilton Worldwide (2007–2013)
Private equity patience pays off
What happened
In 2007, Blackstone bought Hilton for about $26 billion—just before the global financial crisis.
The timing looked terrible. Travel collapsed. Debt was heavy.
Why Hilton went private
- Blackstone saw hidden value in Hilton’s brand and real estate
- Operational inefficiencies could be fixed privately
- Long-term brand investment was needed
What changed after going private
- Blackstone renegotiated debt during the crisis
- Focused on an asset-light strategy (management + branding, not owning hotels)
- Improved operations and margins
In 2013, Hilton returned to public markets in one of the most successful IPOs of its era, generating tens of billions in value for Blackstone over time.
Lesson from Hilton: Going private works when owners are patient, disciplined, and operationally focused—even in a crisis.
Side-by-Side Comparison
| Company | Reason for Going Private | Debt Level | Outcome |
| Dell | Strategic transformation | High but controlled | Successful rebuild |
| Twitter/X | Control + speed | Very high | Volatile, uncertain |
| Hilton | Operational optimization | High, restructured | Huge value creation |
The Big Lessons (McKinsey-Style Synthesis)
1. Going private does not fix bad strategy
- Dell had a clear plan
- Hilton had a clear playbook
- Twitter/X is still writing its story
2. Debt is a tool—not a strategy
- Used wisely → amplifies returns
- Used recklessly → becomes a chokehold
3. Governance matters more in private
Without public scrutiny:
- Boards must be stronger, not weaker
- Discipline must come from inside
4. Time is the real asset
The biggest advantage of going private is time without noise—but only leaders who use that time well win.
Final Takeaway (Plain Truth)
Going private is not about escaping accountability. It is about choosing a different kind of accountability—one that rewards long-term results instead of short-term applause.
Author: John S. Morlu II, CPA is the CEO and Chief Strategist of JS Morlu, leads a globally recognized public accounting and management consultancy firm. Under his visionary leadership, JS Morlu has become a pioneer in developing cutting-edge technologies across B2B, B2C, P2P, and B2G verticals. The firm’s groundbreaking innovations include AI-powered reconciliation software (ReckSoft.com), Uber for handymen (Fixaars.com) and advanced cloud accounting solutions (FinovatePro.com), setting new industry standards for efficiency, accuracy, and technological excellence.