Filing Flows › Alphatec Holdings (ATEC) › Takeover & LBO
Is Alphatec Holdings (ATEC) a takeover target?
A leveraged buyout at today's price plus 30% ($15.07 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $4.83 a share (−58% against today's $11.59). It already carries 11.1× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $15.07 | today's $11.59 plus 30% |
| × shares | 157.4 million | |
| = Equity value | $2.4B | |
| + Debt refinanced | $641M | |
| − Cash | $119M | |
| = Enterprise value | $2.9B | 61.4× EBITDA of $47.1M |
| Fees | $57.9M | 2% of the price |
| New debt | $259M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $2.7B | 91% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $907M | $50.9M | $19.8M | −$34.2M | $293M |
| Year 2 | $968M | $54.3M | $22.4M | −$36.7M | $330M |
| Year 3 | $1.0B | $57.3M | $25.3M | −$39.2M | $369M |
| Year 4 | $1.1B | $59.8M | $28.3M | −$41.6M | $411M |
| Year 5 | $1.1B | $61.5M | $31.4M | −$43.9M | $455M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 49.8× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $3.1B | |
| − Debt left | $455M | |
| = Buyer's equity | $2.6B | |
| Money multiple | 0.97× | on $2.7B put in |
| Buyer's yearly return (IRR) | −0.6% |
Price against return
What the buyer makes at other premiums over today's $11.59; the IRR reaches 20% at $4.83 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $12.75 | 2.4% |
| 20% | $13.91 | 0.8% |
| 30% | $15.07 | −0.6% |
| 40% | $16.23 | −1.9% |
| 50% | $17.38 | −3.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $840M | |
| EBITDA, last 12 months | $47.1M | 5.6% of revenue |
| Depreciation and amortization | $77.2M | |
| Capital spending | $54.2M | |
| Debt | $641M | |
| Cash | $119M | |
| Share price | $11.59 | on Oct 22, 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 21% 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, Alphatec Holdings would cost about $15.65 a share, $2.5B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $14.14 | $2.2B |
| Median | 35% | $15.65 | $2.5B |
| High end (a quarter paid more) | 45% | $16.81 | $2.6B |
Alphatec Holdings' latest quarter
Alphatec Holdings, Q3 2026: revenue $221M (+13% year over year), operating margin 1.5%, net loss $5.5M, operating cash flow $18.9M. The chart follows the revenue to costs, profit and cash.
Questions
Is Alphatec Holdings being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Alphatec Holdings?
A leveraged buyout at today's price plus 30% ($15.07 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $4.83 a share (−58% against today's $11.59). It already carries 11.1× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own.
What would a takeover of Alphatec Holdings 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, Alphatec Holdings would cost about $15.65 a share, $2.5B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.