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Filing Flows › Brown Forman (BF-B) › Takeover & LBO

Is Brown Forman (BF-B) a takeover target?

A leveraged buyout at today's price plus 30% ($37.32 a share) would return a loss of about 0% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $19.62 a share (−32% against today's $28.71). Historically 2.7% of companies with its figures were bought within a year (0.53× the average).

Share price$28.71
Offer at +30%$37.32
Buyer's IRR0%
Most for 20%$19.62
EV / EBITDA14.1×
Buyout debt5.5× EBITDA

The buyout, step by step

EntryAmountHow
Offer price a share$37.32today's $28.71 plus 30%
× shares459.5 million
= Equity value$17.2B
+ Debt refinanced$2.4B
− Cash$301M
= Enterprise value$19.3B17.8× EBITDA of $1.1B
Fees$386M2% of the price
New debt$6.0B5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA
Buyer's own money$13.7B70% of the cost

5 years under the buyer

Brown Forman: buyout debt left, year by yearBrown Forman: buyout debt left, year by year$6.0BEntry$5.5BYear 1$5.1BYear 2$4.5BYear 3$4.0BYear 4$3.4BYear 5
Free cash flow after interest and tax repays the debt; a shortfall is borrowed.
YearRevenueEBITDAInterestFree cash flowDebt left
Year 1$5.1B$1.1B$457M$439M$5.5B
Year 2$5.2B$1.1B$423M$474M$5.1B
Year 3$5.3B$1.1B$387M$516M$4.5B
Year 4$5.4B$1.2B$348M$565M$4.0B
Year 5$5.6B$1.2B$304M$622M$3.4B

The exit and the buyer's return

ExitAmount
Exit multiple14.1× EBITDAtoday's trading multiple, before any premium
Enterprise value at exit$16.8B
− Debt left$3.4B
= Buyer's equity$13.5B
Money multiple0.98×on $13.7B put in
Buyer's yearly return (IRR)−0.4%

Price against return

What the buyer makes at other premiums over today's $28.71; the IRR reaches 20% at $19.62 a share.

PremiumPrice a shareBuyer's IRR
10%$31.584.1%
20%$34.451.7%
30%$37.32−0.4%
40%$40.19−2.2%
50%$43.06−3.9%

The figures used

FigureAmount
Revenue, last 12 months$5.1B
EBITDA, last 12 months$1.1B21.4% of revenue
Depreciation and amortization$93.0M
Capital spending$88.0M
Debt$2.4B
Cash$301M
Share price$28.71on 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 0.7% 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 19% 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, Brown Forman would cost about $38.04 a share, $17.5B for all its shares.

Premium%Price a shareAll shares
Low end (a quarter of deals paid less)20%$34.45$15.8B
Median32.5%$38.04$17.5B
High end (a quarter paid more)51.8%$43.58$20.0B

The odds, from history

Historically 2.7% of companies with its figures were bought within a year (0.53× 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.

Brown Forman's latest quarter

Brown Forman, Q1 FY27: revenue $1.2B (-0.8% year over year), operating margin 21.3%, net earnings $176M, operating cash flow $173M. The chart follows the revenue to costs, profit and cash.

Questions

Is Brown Forman being acquired?

No headline, 8-K or 13D about a sale is on file in the last year.

Could private equity buy Brown Forman?

A leveraged buyout at today's price plus 30% ($37.32 a share) would return a loss of about 0% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $19.62 a share (−32% against today's $28.71).

What would a takeover of Brown Forman 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, Brown Forman would cost about $38.04 a share, $17.5B for all its shares.

Open the interactive view →

Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.