Filing Flows › Barrett Business Services (BBSI) › Takeover & LBO
Is Barrett Business Services (BBSI) a takeover target?
A leveraged buyout at today's price plus 30% ($42.29 a share) would return a loss of about 2% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $42.29 | today's $32.53 plus 30% |
| × shares | 24.7 million | |
| = Equity value | $1.0B | |
| + Debt refinanced | $0 | |
| − Cash | $67.9M | |
| = Enterprise value | $977M | 16.0× EBITDA of $60.9M |
| Fees | $19.5M | 2% of the price |
| New debt | $335M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $661M | 66% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.3B | $64.3M | $25.6M | $503K | $335M |
| Year 2 | $1.4B | $67.5M | $25.6M | $2.3M | $332M |
| Year 3 | $1.5B | $70.4M | $25.4M | $4.1M | $328M |
| Year 4 | $1.5B | $73.0M | $25.1M | $6.0M | $322M |
| Year 5 | $1.6B | $75.2M | $24.6M | $8.0M | $314M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 12.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $908M | |
| − Debt left | $314M | |
| = Buyer's equity | $594M | |
| Money multiple | 0.90× | on $661M put in |
| Buyer's yearly return (IRR) | −2.1% |
Price against return
What the buyer makes at other premiums over today's $32.53.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $35.78 | 3.6% |
| 20% | $39.04 | 0.5% |
| 30% | $42.29 | −2.1% |
| 40% | $45.54 | −4.4% |
| 50% | $48.80 | −6.4% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.3B | |
| EBITDA, last 12 months | $60.9M | 4.8% of revenue |
| Depreciation and amortization | $8.7M | |
| Capital spending | $21.1M | |
| Debt | $0 | |
| Cash | $67.9M | |
| Share price | $32.53 | on Oct 30, 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 5.6% 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 30% 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, Barrett Business Services would cost about $45.54 a share, $1.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $37.31 | $922M |
| Median | 40% | $45.54 | $1.1B |
| High end (a quarter paid more) | 60.2% | $52.11 | $1.3B |
Barrett Business Services' latest quarter
Barrett Business Services, Q3 2026: revenue $334M (+5% year over year), operating margin 6.4%, net earnings $16.8M, operating cash flow $26.9M. The chart follows the revenue to costs, profit and cash.
Questions
Is Barrett Business Services being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Barrett Business Services?
A leveraged buyout at today's price plus 30% ($42.29 a share) would return a loss of about 2% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Barrett Business Services 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, Barrett Business Services would cost about $45.54 a share, $1.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.