Filing Flows › Callaway Golf (CALY) › Takeover & LBO
Is Callaway Golf (CALY) a takeover target?
A leveraged buyout at today's price plus 30% ($19.71 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 5.1% of companies with its figures were bought within a year (1.01× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $19.71 | today's $15.16 plus 30% |
| × shares | 183.3 million | |
| = Equity value | $3.6B | |
| + Debt refinanced | $50.3M | |
| − Cash | $434M | |
| = Enterprise value | $3.2B | 11.2× EBITDA of $287M |
| Fees | $64.6M | 2% of the price |
| New debt | $1.6B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $1.7B | 52% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.1B | $293M | $121M | $90.5M | $1.5B |
| Year 2 | $2.2B | $299M | $114M | $98.6M | $1.4B |
| Year 3 | $2.2B | $307M | $106M | $108M | $1.3B |
| Year 4 | $2.3B | $315M | $98.1M | $118M | $1.2B |
| Year 5 | $2.4B | $324M | $89.1M | $129M | $1.0B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 8.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $2.7B | |
| − Debt left | $1.0B | |
| = Buyer's equity | $1.7B | |
| Money multiple | 0.97× | on $1.7B put in |
| Buyer's yearly return (IRR) | −0.5% |
Price against return
What the buyer makes at other premiums over today's $15.16.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $16.68 | 7.8% |
| 20% | $18.19 | 3.2% |
| 30% | $19.71 | −0.5% |
| 40% | $21.22 | −3.5% |
| 50% | $22.74 | −6.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.1B | |
| EBITDA, last 12 months | $287M | 13.6% of revenue |
| Depreciation and amortization | $43.6M | |
| Capital spending | $38.4M | |
| Debt | $50.3M | |
| Cash | $434M | |
| Share price | $15.16 | 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 1.9% 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 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, Callaway Golf would cost about $20.09 a share, $3.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $18.19 | $3.3B |
| Median | 32.5% | $20.09 | $3.7B |
| High end (a quarter paid more) | 51.8% | $23.01 | $4.2B |
The odds, from history
Historically 5.1% of companies with its figures were bought within a year (1.01× 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.
Callaway Golf's latest quarter
Callaway Golf, Q3 2026: revenue $437M (-6% year over year), operating margin 10.2%, net earnings $45.7M, operating cash flow $192M. The chart follows the revenue to costs, profit and cash.
Questions
Is Callaway Golf being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Callaway Golf?
A leveraged buyout at today's price plus 30% ($19.71 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Callaway Golf 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, Callaway Golf would cost about $20.09 a share, $3.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.