Filing Flows › Avnet (AVT) › Takeover & LBO
Is Avnet (AVT) a takeover target?
A leveraged buyout at today's price plus 30% ($99.62 a share) would return about 8% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $69.86 a share (−9% against today's $76.63). Historically 2.1% of companies with its figures were bought within a year (0.42× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $99.62 | today's $76.63 plus 30% |
| × shares | 86.0 million | |
| = Equity value | $8.6B | |
| + Debt refinanced | $4.2B | |
| − Cash | $237M | |
| = Enterprise value | $12.5B | 11.0× EBITDA of $1.1B |
| Fees | $250M | 2% of the price |
| New debt | $6.3B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $6.5B | 51% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $35.0B | $1.2B | $478M | $239M | $6.0B |
| Year 2 | $37.4B | $1.3B | $460M | $333M | $5.7B |
| Year 3 | $39.5B | $1.4B | $435M | $433M | $5.2B |
| Year 4 | $41.1B | $1.4B | $401M | $536M | $4.7B |
| Year 5 | $42.4B | $1.5B | $360M | $641M | $4.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 9.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $13.7B | |
| − Debt left | $4.1B | |
| = Buyer's equity | $9.7B | |
| Money multiple | 1.49× | on $6.5B put in |
| Buyer's yearly return (IRR) | 8.3% |
Price against return
What the buyer makes at other premiums over today's $76.63; the IRR reaches 20% at $69.86 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $84.29 | 13.4% |
| 20% | $91.96 | 10.7% |
| 30% | $99.62 | 8.3% |
| 40% | $107.28 | 6.2% |
| 50% | $114.94 | 4.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $32.5B | |
| EBITDA, last 12 months | $1.1B | 3.5% of revenue |
| Depreciation and amortization | $79.2M | |
| Capital spending | $73.2M | |
| Debt | $4.2B | |
| Cash | $237M | |
| Share price | $76.63 | 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 26% 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 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Avnet would cost about $107.28 a share, $9.2B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $87.89 | $7.6B |
| Median | 40% | $107.28 | $9.2B |
| High end (a quarter paid more) | 60.2% | $122.76 | $10.6B |
The odds, from history
Historically 2.1% of companies with its figures were bought within a year (0.42× 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.
Avnet's latest quarter
Avnet, Q1 FY27: revenue $10.7B (+82% year over year), operating margin 4.4%, net earnings $282M, operating cash flow −$842M. The chart follows the revenue to costs, profit and cash.
Questions
Is Avnet being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Avnet?
A leveraged buyout at today's price plus 30% ($99.62 a share) would return about 8% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $69.86 a share (−9% against today's $76.63).
What would a takeover of Avnet cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Avnet would cost about $107.28 a share, $9.2B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.