Filing Flows › Best BUY (BBY) › Takeover & LBO
Is Best BUY (BBY) a takeover target?
A leveraged buyout at today's price plus 30% ($129.22 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%. Historically 1.9% of companies with its figures were bought within a year (0.38× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $129.22 | today's $99.40 plus 30% |
| × shares | 212.7 million | |
| = Equity value | $27.5B | |
| + Debt refinanced | $1.2B | |
| − Cash | $2.3B | |
| = Enterprise value | $26.4B | 10.5× EBITDA of $2.5B |
| Fees | $528M | 2% of the price |
| New debt | $13.8B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $13.1B | 49% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $42.8B | $2.5B | $1.1B | $528M | $13.3B |
| Year 2 | $43.6B | $2.6B | $1.0B | $565M | $12.7B |
| Year 3 | $44.6B | $2.6B | $972M | $609M | $12.1B |
| Year 4 | $45.7B | $2.7B | $925M | $660M | $11.4B |
| Year 5 | $47.1B | $2.8B | $875M | $720M | $10.7B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 8.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $22.4B | |
| − Debt left | $10.7B | |
| = Buyer's equity | $11.7B | |
| Money multiple | 0.89× | on $13.1B put in |
| Buyer's yearly return (IRR) | −2.3% |
Price against return
What the buyer makes at other premiums over today's $99.40.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $109.34 | 5.8% |
| 20% | $119.28 | 1.2% |
| 30% | $129.22 | −2.3% |
| 40% | $139.16 | −5.3% |
| 50% | $149.10 | −7.7% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $42.2B | |
| EBITDA, last 12 months | $2.5B | 5.9% of revenue |
| Depreciation and amortization | $798M | |
| Capital spending | $707M | |
| Debt | $1.2B | |
| Cash | $2.3B | |
| Share price | $99.40 | 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 1.4% 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 27% 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 on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Best BUY would cost about $131.71 a share, $28.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $119.28 | $25.4B |
| Median | 32.5% | $131.71 | $28.0B |
| High end (a quarter paid more) | 51.8% | $150.89 | $32.1B |
The odds, from history
Historically 1.9% of companies with its figures were bought within a year (0.38× 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.
Best BUY's latest quarter
Best BUY, Q2 FY27: revenue $9.8B (+4% year over year), operating margin 4.3%, net earnings $315M, operating cash flow $921M. The chart follows the revenue to costs, profit and cash.
Questions
Is Best BUY being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Best BUY?
A leveraged buyout at today's price plus 30% ($129.22 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 Best BUY cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Best BUY would cost about $131.71 a share, $28.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.