Filing Flows › Bausch & Lomb (BLCO) › Takeover & LBO
Is Bausch & Lomb (BLCO) a takeover target?
A leveraged buyout at today's price plus 30% ($25.92 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $12.30 a share (−38% against today's $19.94). Historically 3.0% of companies with its figures were bought within a year (0.6× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $25.92 | today's $19.94 plus 30% |
| × shares | 361.5 million | |
| = Equity value | $9.4B | |
| + Debt refinanced | $5.0B | |
| − Cash | $513M | |
| + Other claims | $71.0M | preferred stock, minority interests |
| = Enterprise value | $13.9B | 17.7× EBITDA of $787M |
| Fees | $279M | 2% of the price |
| New debt | $4.3B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $9.9B | 70% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $5.9B | $850M | $331M | $132M | $4.2B |
| Year 2 | $6.2B | $907M | $321M | $173M | $4.0B |
| Year 3 | $6.6B | $957M | $308M | $215M | $3.8B |
| Year 4 | $6.9B | $998M | $291M | $255M | $3.6B |
| Year 5 | $7.1B | $1.0B | $272M | $293M | $3.3B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 15.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $15.4B | |
| − Debt left | $3.3B | |
| = Buyer's equity | $12.1B | |
| Money multiple | 1.23× | on $9.9B put in |
| Buyer's yearly return (IRR) | 4.2% |
Price against return
What the buyer makes at other premiums over today's $19.94; the IRR reaches 20% at $12.30 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $21.93 | 7.6% |
| 20% | $23.93 | 5.8% |
| 30% | $25.92 | 4.2% |
| 40% | $27.92 | 2.7% |
| 50% | $29.91 | 1.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $5.4B | |
| EBITDA, last 12 months | $787M | 14.5% of revenue |
| Depreciation and amortization | $404M | |
| Capital spending | $302M | |
| Debt | $5.0B | |
| Cash | $513M | |
| Share price | $19.94 | 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 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 21% 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 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Bausch & Lomb would cost about $26.92 a share, $9.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $24.33 | $8.8B |
| Median | 35% | $26.92 | $9.7B |
| High end (a quarter paid more) | 45% | $28.91 | $10.5B |
The odds, from history
Historically 3.0% of companies with its figures were bought within a year (0.6× 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.
Bausch & Lomb's latest quarter
Bausch & Lomb, Q3 2026: revenue $1.4B (+7% year over year), operating margin 11.3%, net earnings $32.0M, operating cash flow $233M. The chart follows the revenue to costs, profit and cash.
Questions
Is Bausch & Lomb being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Bausch & Lomb?
A leveraged buyout at today's price plus 30% ($25.92 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $12.30 a share (−38% against today's $19.94).
What would a takeover of Bausch & Lomb cost?
Takeovers in its sector paid a median premium of 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Bausch & Lomb would cost about $26.92 a share, $9.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.