Filing Flows › Broadcom (AVGO) › Takeover & LBO
Is Broadcom (AVGO) a takeover target?
A leveraged buyout at today's price plus 30% ($378.99 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 $196.23 a share (−33% against today's $291.53). At $1.89T 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 3.1% of companies with its figures were bought within a year (0.62× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $378.99 | today's $291.53 plus 30% |
| × shares | 4,887.0 million | |
| = Equity value | $1.85T | |
| + Debt refinanced | $59.9B | |
| − Cash | $24.0B | |
| = Enterprise value | $1.89T | 36.7× EBITDA of $51.4B |
| Fees | $37.8B | 2% of the price |
| New debt | $282.9B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $1.64T | 85% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $96.2B | $55.6B | $21.6B | $28.9B | $254.0B |
| Year 2 | $102.7B | $59.3B | $19.4B | $34.2B | $219.8B |
| Year 3 | $108.4B | $62.6B | $16.8B | $39.4B | $180.4B |
| Year 4 | $113.0B | $65.2B | $13.8B | $44.5B | $135.9B |
| Year 5 | $116.4B | $67.2B | $10.4B | $49.4B | $86.5B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 28.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.91T | |
| − Debt left | $86.5B | |
| = Buyer's equity | $1.82T | |
| Money multiple | 1.11× | on $1.64T put in |
| Buyer's yearly return (IRR) | 2.1% |
Price against return
What the buyer makes at other premiums over today's $291.53; the IRR reaches 20% at $196.23 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $320.68 | 6.1% |
| 20% | $349.84 | 4.0% |
| 30% | $378.99 | 2.1% |
| 40% | $408.14 | 0.4% |
| 50% | $437.29 | −1.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $89.1B | |
| EBITDA, last 12 months | $51.4B | 57.7% of revenue |
| Depreciation and amortization | $8.6B | |
| Capital spending | $1.2B | |
| Debt | $59.9B | |
| Cash | $24.0B | |
| Share price | $291.53 | 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 12% 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 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Broadcom would cost about $378.99 a share, $1.85T for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $326.51 | $1.60T |
| Median | 30% | $378.99 | $1.85T |
| High end (a quarter paid more) | 31% | $381.90 | $1.87T |
The odds, from history
Historically 3.1% of companies with its figures were bought within a year (0.62× the average). Its figures put it in decile 2 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.
Broadcom's latest quarter
Broadcom, Q3 FY26: revenue $29.6B (+86% year over year), operating margin 53.9%, net earnings $13.1B, operating cash flow $14.2B. The chart follows the revenue to costs, profit and cash.
Questions
Is Broadcom being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Broadcom?
A leveraged buyout at today's price plus 30% ($378.99 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 $196.23 a share (−33% against today's $291.53). At $1.89T 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 Broadcom cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Broadcom would cost about $378.99 a share, $1.85T for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.