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  "documentTitle": "BCG Dell and Pivotal Project Denali",
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      "text": "Mid market and Enterprise customers interested in financing – especially leasing; Most competitors have retained captive finance arms (e.g. HP, Cisco, IBM); Parent's knowledge of products enables life cycle management of leased assets; 47% of DFS originations in FY'12 were leases; largely to SMB and PLE segments; Captive has customer relationships and parent has access to product pipeline information – this facilitates migrating customers from Gen 1.0 to Gen 2.0 products as technology evolves; Consolidated co. can integrate financing with pricing/promotions to increase probability of sale",
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      "text": "1. Financing/Leasing - important part of the customer offer\n2. Integrated (captive) financing units enable coordinated marketing & life cycle asset management\n3. Value from DFS separation is less obvious at this point\n4. Separation will take time and may cause disruption",
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      "text": "For a transaction to offer compelling value, the offer should offset revenue dis-synergies from: Inclusion of the third-party financing entity into commercial sales cycle; Denali's reduced flexibility to integrate pricing/promotions with financing to sell; Denali currently has strong credit rating, with small disadvantage (if any) on funding costs",
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      "text": "A well-integrated sales and financing interface is valued by customers; DFS has 23% pen. rate in SMBs, manages ~$3B in commercial receivables; Faster approval times with fewer handoffs important to customers (BCG case experience)",
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      "text": "DFS not configured for separation at present; therefore separating will take time; DFS is not a separate legal entity; DFS CSMB organization is integrated with its counterpart Denali division; Treasury, Legal, HR, and other support functions handled through shared services at Denali; Denali is in the middle of executing a transformation and DFS separation may impact mgmt focus; Base case and cost take-out requires execution bandwidth with high value creation potential",
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      "text": "Source: Denali data, Management interviews, Advisor interviews, BCG experts, BCG research",
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