Filing Flows › Franklin Templeton (BEN) › Takeover & LBO
Is Franklin Templeton (BEN) a takeover target?
A leveraged buyout at today's price plus 30% ($43.76 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $26.11 a share (−22% against today's $33.66). Historically 2.8% of companies with its figures were bought within a year (0.55× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $43.76 | today's $33.66 plus 30% |
| × shares | 516.0 million | |
| = Equity value | $22.6B | |
| + Debt refinanced | $2.4B | |
| − Cash | $3.8B | |
| + Other claims | $1.2B | preferred stock, minority interests |
| = Enterprise value | $22.4B | 21.8× EBITDA of $1.0B |
| Fees | $448M | 2% of the price |
| New debt | $5.6B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $17.2B | 75% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $10.1B | $1.1B | $432M | $414M | $5.2B |
| Year 2 | $10.7B | $1.2B | $400M | $499M | $4.7B |
| Year 3 | $11.3B | $1.2B | $362M | $584M | $4.2B |
| Year 4 | $11.8B | $1.3B | $318M | $666M | $3.5B |
| Year 5 | $12.2B | $1.3B | $267M | $746M | $2.7B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 16.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $22.4B | |
| − Debt left | $2.7B | |
| = Buyer's equity | $19.7B | |
| Money multiple | 1.14× | on $17.2B put in |
| Buyer's yearly return (IRR) | 2.7% |
Price against return
What the buyer makes at other premiums over today's $33.66; the IRR reaches 20% at $26.11 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $37.03 | 7.6% |
| 20% | $40.40 | 5.0% |
| 30% | $43.76 | 2.7% |
| 40% | $47.13 | 0.7% |
| 50% | $50.50 | −1.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $9.3B | |
| EBITDA, last 12 months | $1.0B | 11.0% of revenue |
| Depreciation and amortization | $121M | |
| Capital spending | $46.2M | |
| Debt | $2.4B | |
| Cash | $3.8B | |
| Share price | $33.66 | 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 7.9% 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 25% 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 14.9% over the share price before the deal (the middle half 9.5% to 33.6%), according to the 17 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Franklin Templeton would cost about $38.68 a share, $20.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 9.5% | $36.86 | $19.0B |
| Median | 14.9% | $38.68 | $20.0B |
| High end (a quarter paid more) | 33.6% | $44.98 | $23.2B |
The odds, from history
Historically 2.8% of companies with its figures were bought within a year (0.55× 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.
Franklin Templeton's latest quarter
Franklin Templeton, Q4 FY26: revenue $2.4B (+4% year over year), operating margin 14.6%, net earnings $380M. The chart follows the revenue to costs, profit and cash.
Questions
Is Franklin Templeton being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Franklin Templeton?
A leveraged buyout at today's price plus 30% ($43.76 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $26.11 a share (−22% against today's $33.66).
What would a takeover of Franklin Templeton cost?
Takeovers in its sector paid a median premium of 14.9% over the share price before the deal (the middle half 9.5% to 33.6%), according to the 17 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Franklin Templeton would cost about $38.68 a share, $20.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.