Filing Flows › Chime Financial (CHYM) › Takeover & LBO
Is Chime Financial (CHYM) a takeover target?
A leveraged buyout at today's price plus 30% ($36.34 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 2.8% of companies with its figures were bought within a year (0.56× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $36.34 | today's $27.95 plus 30% |
| × shares | 400.1 million | |
| = Equity value | $14.5B | |
| + Debt refinanced | $0 | |
| − Cash | $1.2B | |
| = Enterprise value | $13.4B | 169.0× EBITDA of $79.0M |
| Fees | $267M | 2% of the price |
| New debt | $435M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $13.2B | 97% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.8B | $85.3M | $33.2M | −$9.5M | $444M |
| Year 2 | $3.0B | $91.1M | $34.0M | −$5.5M | $450M |
| Year 3 | $3.2B | $96.1M | $34.4M | −$1.0M | $451M |
| Year 4 | $3.3B | $100M | $34.5M | $3.9M | $447M |
| Year 5 | $3.4B | $103M | $34.2M | $9.2M | $438M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 126.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $13.1B | |
| − Debt left | $438M | |
| = Buyer's equity | $12.6B | |
| Money multiple | 0.96× | on $13.2B put in |
| Buyer's yearly return (IRR) | −0.9% |
Price against return
What the buyer makes at other premiums over today's $27.95.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $30.75 | 3.0% |
| 20% | $33.54 | 0.9% |
| 30% | $36.34 | −0.9% |
| 40% | $39.13 | −2.5% |
| 50% | $41.92 | −4.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.6B | |
| EBITDA, last 12 months | $79.0M | 3.0% of revenue |
| Depreciation and amortization | $31.0M | |
| Capital spending | $35.5M | |
| Debt | $0 | |
| Cash | $1.2B | |
| Share price | $27.95 | 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 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 12% 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 14.9% over the share price before the deal (the middle half 9.5% to 33.6%), according to the 17 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Chime Financial would cost about $32.11 a share, $12.8B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 9.5% | $30.61 | $12.2B |
| Median | 14.9% | $32.11 | $12.8B |
| High end (a quarter paid more) | 33.6% | $37.34 | $14.9B |
The odds, from history
Historically 2.8% of companies with its figures were bought within a year (0.56× 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.
Chime Financial's latest quarter
Chime Financial, Q3 2026: revenue $718M (+32% year over year), operating margin 4.8%, net earnings $43.7M, operating cash flow $126M. The chart follows the revenue to costs, profit and cash.
Questions
Is Chime Financial being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Chime Financial?
A leveraged buyout at today's price plus 30% ($36.34 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 Chime Financial cost?
Takeovers in its sector paid a median premium of 14.9% over the share price before the deal (the middle half 9.5% to 33.6%), according to the 17 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Chime Financial would cost about $32.11 a share, $12.8B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.