Filing Flows › Advance Auto Parts (AAP) › Takeover & LBO
Is Advance Auto Parts (AAP) a takeover target?
A leveraged buyout does not work for Advance Auto Parts on its latest figures: its EBITDA margin is only 2.7% ($229M on revenue of $8.6B), too thin to carry buyout debt. Historically 3.2% of companies with its figures were bought within a year (0.64× the average).
Why a leveraged buyout does not fit
Advance Auto Parts kept 2.7% of its revenue as EBITDA over the last 12 months ($229M on $8.6B). A margin that thin cannot carry the debt a leveraged buyout needs — a small dip in sales would leave nothing for interest — so the model gives no buyout price.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Advance Auto Parts would cost about $60.88 a share, $3.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $55.13 | $3.3B |
| Median | 32.5% | $60.88 | $3.7B |
| High end (a quarter paid more) | 51.8% | $69.74 | $4.2B |
The odds, from history
Historically 3.2% of companies with its figures were bought within a year (0.64× the average). Its figures put it in decile 3 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Advance Auto Parts' latest quarter
Advance Auto Parts, Q3 2026: revenue $2.0B (-1% year over year), operating margin 2.3%, net earnings $15.0M, operating cash flow $59.0M. The chart follows the revenue to costs, profit and cash.
Questions
Is Advance Auto Parts being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Advance Auto Parts?
A leveraged buyout does not work for Advance Auto Parts on its latest figures: its EBITDA margin is only 2.7% ($229M on revenue of $8.6B), too thin to carry buyout debt. A margin that thin leaves almost nothing to pay interest with, so buyout debt does not fit.
What would a takeover of Advance Auto Parts cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Advance Auto Parts would cost about $60.88 a share, $3.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.