Filing Flows › Constellation Energy (CEG) › Takeover & LBO
Is Constellation Energy (CEG) a takeover target?
A leveraged buyout at today's price plus 30% ($311.55 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $186.62 a share (−22% against today's $239.65). At $124.4B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect. Historically 1.6% of companies with its figures were bought within a year (0.31× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $311.55 | today's $239.65 plus 30% |
| × shares | 360.0 million | |
| = Equity value | $112.2B | |
| + Debt refinanced | $12.6B | |
| − Cash | $697M | |
| + Other claims | $345M | preferred stock, minority interests |
| = Enterprise value | $124.4B | 15.1× EBITDA of $8.3B |
| Fees | $2.5B | 2% of the price |
| New debt | $45.5B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $81.5B | 64% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $33.8B | $8.9B | $3.5B | $544M | $44.9B |
| Year 2 | $36.1B | $9.5B | $3.4B | $813M | $44.1B |
| Year 3 | $38.0B | $10.1B | $3.4B | $1.1B | $43.0B |
| Year 4 | $39.7B | $10.5B | $3.3B | $1.3B | $41.7B |
| Year 5 | $40.8B | $10.8B | $3.2B | $1.6B | $40.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 11.9× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $128.7B | |
| − Debt left | $40.1B | |
| = Buyer's equity | $88.6B | |
| Money multiple | 1.09× | on $81.5B put in |
| Buyer's yearly return (IRR) | 1.7% |
Price against return
What the buyer makes at other premiums over today's $239.65; the IRR reaches 20% at $186.62 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $263.62 | 6.8% |
| 20% | $287.58 | 4.0% |
| 30% | $311.55 | 1.7% |
| 40% | $335.51 | −0.4% |
| 50% | $359.48 | −2.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $31.3B | |
| EBITDA, last 12 months | $8.3B | 26.4% of revenue |
| Depreciation and amortization | $3.7B | |
| Capital spending | $3.9B | |
| Debt | $12.6B | |
| Cash | $697M | |
| Share price | $239.65 | 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 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, Constellation Energy would cost about $317.54 a share, $114.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $287.58 | $103.5B |
| Median | 32.5% | $317.54 | $114.3B |
| High end (a quarter paid more) | 51.8% | $363.79 | $131.0B |
The odds, from history
Historically 1.6% of companies with its figures were bought within a year (0.31× 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.
Constellation Energy's latest quarter
Constellation Energy, Q2 2026: revenue $7.5B (+23% year over year), operating margin 7.7%, net earnings $513M, operating cash flow $1.1B. The chart follows the revenue to costs, profit and cash.
Questions
Is Constellation Energy being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Constellation Energy?
A leveraged buyout at today's price plus 30% ($311.55 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $186.62 a share (−22% against today's $239.65). At $124.4B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect.
What would a takeover of Constellation Energy 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, Constellation Energy would cost about $317.54 a share, $114.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.