Filing Flows › Abbott Laboratories (ABT) › Takeover & LBO
Is Abbott Laboratories (ABT) a takeover target?
A leveraged buyout at today's price plus 30% ($147.68 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $81.03 a share (−29% against today's $113.60). At $265.9B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect. Historically 2.4% of companies with its figures were bought within a year (0.48× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $147.68 | today's $113.60 plus 30% |
| × shares | 1,737.9 million | |
| = Equity value | $256.7B | |
| + Debt refinanced | $12.9B | |
| − Cash | $4.3B | |
| + Other claims | $596M | preferred stock, minority interests |
| = Enterprise value | $265.9B | 25.2× EBITDA of $10.6B |
| Fees | $5.3B | 2% of the price |
| New debt | $58.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $213.1B | 79% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $52.1B | $11.4B | $4.4B | $3.5B | $54.5B |
| Year 2 | $55.6B | $12.2B | $4.2B | $4.2B | $50.3B |
| Year 3 | $58.7B | $12.8B | $3.8B | $4.9B | $45.4B |
| Year 4 | $61.2B | $13.4B | $3.5B | $5.6B | $39.8B |
| Year 5 | $63.0B | $13.8B | $3.0B | $6.2B | $33.5B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 19.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $269.9B | |
| − Debt left | $33.5B | |
| = Buyer's equity | $236.4B | |
| Money multiple | 1.11× | on $213.1B put in |
| Buyer's yearly return (IRR) | 2.1% |
Price against return
What the buyer makes at other premiums over today's $113.60; the IRR reaches 20% at $81.03 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $124.96 | 6.5% |
| 20% | $136.32 | 4.1% |
| 30% | $147.68 | 2.1% |
| 40% | $159.04 | 0.3% |
| 50% | $170.40 | −1.4% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $48.2B | |
| EBITDA, last 12 months | $10.6B | 21.9% of revenue |
| Depreciation and amortization | $3.9B | |
| Capital spending | $2.1B | |
| Debt | $12.9B | |
| Cash | $4.3B | |
| Share price | $113.60 | on Nov 6, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 28% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Abbott Laboratories would cost about $153.36 a share, $266.5B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $138.59 | $240.9B |
| Median | 35% | $153.36 | $266.5B |
| High end (a quarter paid more) | 45% | $164.72 | $286.3B |
The odds, from history
Historically 2.4% of companies with its figures were bought within a year (0.48× the average). Its figures put it in decile 1 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.
Abbott Laboratories' latest quarter
Abbott Laboratories, Q3 2026: revenue $13.0B (+14% year over year), operating margin 10.4%, net earnings $920M, operating cash flow $1.7B. The chart follows the revenue to costs, profit and cash.
Questions
Is Abbott Laboratories being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Abbott Laboratories?
A leveraged buyout at today's price plus 30% ($147.68 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $81.03 a share (−29% against today's $113.60). At $265.9B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect.
What would a takeover of Abbott Laboratories cost?
Takeovers in its sector paid a median premium of 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Abbott Laboratories would cost about $153.36 a share, $266.5B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.