Filing Flows › CDW (CDW) › Takeover & LBO
Is CDW (CDW) a takeover target?
A leveraged buyout at today's price plus 30% ($205.91 a share) would return about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $128.78 a share (−19% against today's $158.39). Historically 2.0% of companies with its figures were bought within a year (0.39× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $205.91 | today's $158.39 plus 30% |
| × shares | 125.7 million | |
| = Equity value | $25.9B | |
| + Debt refinanced | $7.1B | |
| − Cash | $1.5B | |
| = Enterprise value | $31.5B | 15.5× EBITDA of $2.0B |
| Fees | $629M | 2% of the price |
| New debt | $11.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $21.0B | 65% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $26.5B | $2.2B | $852M | $748M | $10.4B |
| Year 2 | $28.3B | $2.3B | $794M | $914M | $9.5B |
| Year 3 | $29.8B | $2.5B | $725M | $1.1B | $8.4B |
| Year 4 | $31.1B | $2.6B | $642M | $1.2B | $7.1B |
| Year 5 | $32.0B | $2.6B | $547M | $1.4B | $5.7B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 12.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $33.3B | |
| − Debt left | $5.7B | |
| = Buyer's equity | $27.6B | |
| Money multiple | 1.31× | on $21.0B put in |
| Buyer's yearly return (IRR) | 5.6% |
Price against return
What the buyer makes at other premiums over today's $158.39; the IRR reaches 20% at $128.78 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $174.23 | 10.3% |
| 20% | $190.07 | 7.8% |
| 30% | $205.91 | 5.6% |
| 40% | $221.75 | 3.7% |
| 50% | $237.58 | 1.9% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $24.5B | |
| EBITDA, last 12 months | $2.0B | 8.3% of revenue |
| Depreciation and amortization | $299M | |
| Capital spending | $119M | |
| Debt | $7.1B | |
| Cash | $1.5B | |
| Share price | $158.39 | 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 26% 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, CDW would cost about $209.87 a share, $26.4B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $190.07 | $23.9B |
| Median | 32.5% | $209.87 | $26.4B |
| High end (a quarter paid more) | 51.8% | $240.44 | $30.2B |
The odds, from history
Historically 2.0% of companies with its figures were bought within a year (0.39× the average). Its figures put it in decile 1 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.
CDW's latest quarter
CDW, Q3 2026: revenue $6.8B (+18% year over year), operating margin 7.2%, net earnings $310M, operating cash flow $399M. The chart follows the revenue to costs, profit and cash.
Questions
Is CDW being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy CDW?
A leveraged buyout at today's price plus 30% ($205.91 a share) would return about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $128.78 a share (−19% against today's $158.39).
What would a takeover of CDW 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, CDW would cost about $209.87 a share, $26.4B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.