Filing Flows › Builders FirstSource (BLDR) › Takeover & LBO
Is Builders FirstSource (BLDR) a takeover target?
A leveraged buyout at today's price plus 30% ($85.15 a share) would return a loss of about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $32.42 a share (−51% against today's $65.50). Historically 2.8% of companies with its figures were bought within a year (0.56× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $85.15 | today's $65.50 plus 30% |
| × shares | 107.6 million | |
| = Equity value | $9.2B | |
| + Debt refinanced | $4.6B | |
| − Cash | $55.0M | |
| = Enterprise value | $13.7B | 15.2× EBITDA of $904M |
| Fees | $275M | 2% of the price |
| New debt | $5.0B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $9.0B | 64% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $13.9B | $877M | $381M | $259M | $4.7B |
| Year 2 | $13.7B | $864M | $361M | $269M | $4.4B |
| Year 3 | $13.7B | $864M | $340M | $289M | $4.2B |
| Year 4 | $13.9B | $877M | $318M | $300M | $3.9B |
| Year 5 | $14.3B | $903M | $295M | $320M | $3.5B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 12.8× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $11.6B | |
| − Debt left | $3.5B | |
| = Buyer's equity | $8.1B | |
| Money multiple | 0.89× | on $9.0B put in |
| Buyer's yearly return (IRR) | −2.2% |
Price against return
What the buyer makes at other premiums over today's $65.50; the IRR reaches 20% at $32.42 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $72.05 | 1.2% |
| 20% | $78.60 | −0.6% |
| 30% | $85.15 | −2.2% |
| 40% | $91.70 | −3.7% |
| 50% | $98.25 | −5.1% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $14.4B | |
| EBITDA, last 12 months | $904M | 6.3% of revenue |
| Depreciation and amortization | $599M | |
| Capital spending | $246M | |
| Debt | $4.6B | |
| Cash | $55.0M | |
| Share price | $65.50 | 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 -3.0% 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 12% 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, Builders FirstSource would cost about $86.79 a share, $9.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $78.60 | $8.5B |
| Median | 32.5% | $86.79 | $9.3B |
| High end (a quarter paid more) | 51.8% | $99.43 | $10.7B |
The odds, from history
Historically 2.8% of companies with its figures were bought within a year (0.56× 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.
Builders FirstSource's latest quarter
Builders FirstSource, Q3 2026: revenue $3.9B (-2% year over year), operating margin 2.6%, net earnings $60.4M, operating cash flow $147M. The chart follows the revenue to costs, profit and cash.
Questions
Is Builders FirstSource being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Builders FirstSource?
A leveraged buyout at today's price plus 30% ($85.15 a share) would return a loss of about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $32.42 a share (−51% against today's $65.50).
What would a takeover of Builders FirstSource 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, Builders FirstSource would cost about $86.79 a share, $9.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.