Filing Flows › Babcock & Wilcox Enterprises (BW) › Takeover & LBO
Is Babcock & Wilcox Enterprises (BW) a takeover target?
A leveraged buyout at today's price plus 30% ($5.40 a share) would return a loss of about 4% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 4.6% of companies with its figures were bought within a year (0.92× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $5.40 | today's $4.15 plus 30% |
| × shares | 154.5 million | |
| = Equity value | $834M | |
| + Debt refinanced | $183M | |
| − Cash | $314M | |
| + Other claims | $77K | preferred stock, minority interests |
| = Enterprise value | $703M | 21.4× EBITDA of $32.8M |
| Fees | $14.1M | 2% of the price |
| New debt | $181M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $536M | 75% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $888M | $35.5M | $13.8M | −$12.5M | $193M |
| Year 2 | $948M | $37.8M | $14.8M | −$12.3M | $205M |
| Year 3 | $1.0B | $39.9M | $15.7M | −$11.9M | $217M |
| Year 4 | $1.0B | $41.6M | $16.6M | −$11.5M | $229M |
| Year 5 | $1.1B | $42.9M | $17.5M | −$10.9M | $240M |
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 | $667M | |
| − Debt left | $240M | |
| = Buyer's equity | $427M | |
| Money multiple | 0.80× | on $536M put in |
| Buyer's yearly return (IRR) | −4.4% |
Price against return
What the buyer makes at other premiums over today's $4.15.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $4.57 | 1.0% |
| 20% | $4.98 | −1.9% |
| 30% | $5.40 | −4.4% |
| 40% | $5.81 | −6.6% |
| 50% | $6.23 | −8.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $822M | |
| EBITDA, last 12 months | $32.8M | 4.0% of revenue |
| Depreciation and amortization | $10.3M | |
| Capital spending | $23.4M | |
| Debt | $183M | |
| Cash | $314M | |
| Share price | $4.15 | on Oct 23, 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 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Babcock & Wilcox Enterprises would cost about $5.81 a share, $898M for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $4.76 | $735M |
| Median | 40% | $5.81 | $898M |
| High end (a quarter paid more) | 60.2% | $6.65 | $1.0B |
The odds, from history
Historically 4.6% of companies with its figures were bought within a year (0.92× the average). Its figures put it in decile 5 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.
Babcock & Wilcox Enterprises' latest quarter
Babcock & Wilcox Enterprises, Q2 2026: revenue $320M (+130% year over year), operating margin 3.7%, net earnings $14.3M, operating cash flow −$17.4M. The chart follows the revenue to costs, profit and cash.
Questions
Is Babcock & Wilcox Enterprises being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Babcock & Wilcox Enterprises?
A leveraged buyout at today's price plus 30% ($5.40 a share) would return a loss of about 4% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Babcock & Wilcox Enterprises cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Babcock & Wilcox Enterprises would cost about $5.81 a share, $898M for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.