Filing Flows › Benchmark Electronics (BHE) › Takeover & LBO
Is Benchmark Electronics (BHE) a takeover target?
A leveraged buyout at today's price plus 30% ($88.88 a share) would return a loss of about 0% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 5.0% of companies with its figures were bought within a year (1.0× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $88.88 | today's $68.37 plus 30% |
| × shares | 36.4 million | |
| = Equity value | $3.2B | |
| + Debt refinanced | $158M | |
| − Cash | $291M | |
| = Enterprise value | $3.1B | 20.5× EBITDA of $151M |
| Fees | $62.0M | 2% of the price |
| New debt | $831M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $2.3B | 74% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $3.2B | $163M | $63.5M | $849K | $830M |
| Year 2 | $3.4B | $174M | $63.5M | $7.6M | $822M |
| Year 3 | $3.6B | $184M | $62.9M | $14.9M | $807M |
| Year 4 | $3.7B | $191M | $61.7M | $22.4M | $785M |
| Year 5 | $3.9B | $197M | $60.0M | $30.1M | $755M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 15.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $3.1B | |
| − Debt left | $755M | |
| = Buyer's equity | $2.3B | |
| Money multiple | 0.99× | on $2.3B put in |
| Buyer's yearly return (IRR) | −0.1% |
Price against return
What the buyer makes at other premiums over today's $68.37.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $75.21 | 4.9% |
| 20% | $82.04 | 2.2% |
| 30% | $88.88 | −0.1% |
| 40% | $95.72 | −2.1% |
| 50% | $102.56 | −4.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.9B | |
| EBITDA, last 12 months | $151M | 5.1% of revenue |
| Depreciation and amortization | $48.0M | |
| Capital spending | $56.3M | |
| Debt | $158M | |
| Cash | $291M | |
| Share price | $68.37 | 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 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 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 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Benchmark Electronics would cost about $88.88 a share, $3.2B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $76.57 | $2.8B |
| Median | 30% | $88.88 | $3.2B |
| High end (a quarter paid more) | 31% | $89.56 | $3.3B |
The odds, from history
Historically 5.0% of companies with its figures were bought within a year (1.0× the average). Its figures put it in decile 6 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.
Benchmark Electronics' latest quarter
Benchmark Electronics, Q3 2026: revenue $811M (+19% year over year), operating margin 3.8%, net earnings $17.1M, operating cash flow $29.9M. The chart follows the revenue to costs, profit and cash.
Questions
Is Benchmark Electronics being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Benchmark Electronics?
A leveraged buyout at today's price plus 30% ($88.88 a share) would return a loss of about 0% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Benchmark Electronics cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Benchmark Electronics would cost about $88.88 a share, $3.2B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.