Filing Flows › Chemed (CHE) › Takeover & LBO
Is Chemed (CHE) a takeover target?
A leveraged buyout at today's price plus 30% ($695.14 a share) would return about 0% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $380.80 a share (−29% against today's $534.72). Historically 3.0% of companies with its figures were bought within a year (0.6× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $695.14 | today's $534.72 plus 30% |
| × shares | 13.1 million | |
| = Equity value | $9.1B | |
| + Debt refinanced | $236M | |
| − Cash | $48.4M | |
| = Enterprise value | $9.3B | 21.3× EBITDA of $438M |
| Fees | $186M | 2% of the price |
| New debt | $2.4B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $7.1B | 75% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.8B | $461M | $184M | $116M | $2.3B |
| Year 2 | $2.9B | $482M | $176M | $135M | $2.2B |
| Year 3 | $3.0B | $502M | $165M | $155M | $2.0B |
| Year 4 | $3.2B | $520M | $153M | $175M | $1.8B |
| Year 5 | $3.2B | $535M | $140M | $196M | $1.6B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 16.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $8.8B | |
| − Debt left | $1.6B | |
| = Buyer's equity | $7.2B | |
| Money multiple | 1.01× | on $7.1B put in |
| Buyer's yearly return (IRR) | 0.2% |
Price against return
What the buyer makes at other premiums over today's $534.72; the IRR reaches 20% at $380.80 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $588.19 | 4.8% |
| 20% | $641.66 | 2.4% |
| 30% | $695.14 | 0.2% |
| 40% | $748.61 | −1.7% |
| 50% | $802.08 | −3.4% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.7B | |
| EBITDA, last 12 months | $438M | 16.5% of revenue |
| Depreciation and amortization | $67.6M | |
| Capital spending | $88.9M | |
| Debt | $236M | |
| Cash | $48.4M | |
| Share price | $534.72 | 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 5.2% 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 in its sector paid a median premium of 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Chemed would cost about $721.87 a share, $9.5B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $652.36 | $8.6B |
| Median | 35% | $721.87 | $9.5B |
| High end (a quarter paid more) | 45% | $775.34 | $10.2B |
The odds, from history
Historically 3.0% of companies with its figures were bought within a year (0.6× the average). Its figures put it in decile 2 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.
Chemed's latest quarter
Chemed, Q3 2026: revenue $691M (+11% year over year), operating margin 14.0%, net earnings $71.6M, operating cash flow $56.6M. The chart follows the revenue to costs, profit and cash.
Questions
Is Chemed being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Chemed?
A leveraged buyout at today's price plus 30% ($695.14 a share) would return about 0% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $380.80 a share (−29% against today's $534.72).
What would a takeover of Chemed cost?
Takeovers in its sector paid a median premium of 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Chemed would cost about $721.87 a share, $9.5B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.