Filing Flows › Brady (BRC) › Takeover & LBO
Is Brady (BRC) a takeover target?
A leveraged buyout at today's price plus 30% ($107.60 a share) would return about 3% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 3.3% of companies with its figures were bought within a year (0.67× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $107.60 | today's $82.77 plus 30% |
| × shares | 47.8 million | |
| = Equity value | $5.1B | |
| + Debt refinanced | $15.0M | |
| − Cash | $187M | |
| = Enterprise value | $5.0B | 16.1× EBITDA of $308M |
| Fees | $99.5M | 2% of the price |
| New debt | $1.7B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.4B | 67% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.8B | $333M | $130M | $102M | $1.6B |
| Year 2 | $1.9B | $356M | $122M | $124M | $1.5B |
| Year 3 | $2.0B | $375M | $112M | $146M | $1.3B |
| Year 4 | $2.1B | $391M | $101M | $167M | $1.2B |
| Year 5 | $2.2B | $403M | $88.4M | $187M | $969M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 12.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $4.9B | |
| − Debt left | $969M | |
| = Buyer's equity | $4.0B | |
| Money multiple | 1.18× | on $3.4B put in |
| Buyer's yearly return (IRR) | 3.3% |
Price against return
What the buyer makes at other premiums over today's $82.77.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $91.05 | 9.1% |
| 20% | $99.32 | 6.0% |
| 30% | $107.60 | 3.3% |
| 40% | $115.88 | 1.0% |
| 50% | $124.16 | −1.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.7B | |
| EBITDA, last 12 months | $308M | 18.6% of revenue |
| Depreciation and amortization | $44.9M | |
| Capital spending | $51.5M | |
| Debt | $15.0M | |
| Cash | $187M | |
| Share price | $82.77 | 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 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 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, Brady would cost about $109.67 a share, $5.2B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $99.32 | $4.7B |
| Median | 32.5% | $109.67 | $5.2B |
| High end (a quarter paid more) | 51.8% | $125.64 | $6.0B |
The odds, from history
Historically 3.3% of companies with its figures were bought within a year (0.67× the average). Its figures put it in decile 3 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.
Brady's latest quarter
Brady, Q4 FY26: revenue $437M (+10% year over year), operating margin 13.8%, net earnings $45.6M, operating cash flow $79.2M. The chart follows the revenue to costs, profit and cash.
Questions
Is Brady being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Brady?
A leveraged buyout at today's price plus 30% ($107.60 a share) would return about 3% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Brady 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, Brady would cost about $109.67 a share, $5.2B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.