Filing Flows › Compass Diversified (CODI) › Takeover & LBO
Is Compass Diversified (CODI) a takeover target?
A leveraged buyout at today's price plus 30% ($14.50 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $4.74 a share (−58% against today's $11.15). Historically 4.1% of companies with its figures were bought within a year (0.81× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $14.50 | today's $11.15 plus 30% |
| × shares | 75.2 million | |
| = Equity value | $1.1B | |
| + Debt refinanced | $1.6B | |
| − Cash | $127M | |
| + Other claims | $142M | preferred stock, minority interests |
| = Enterprise value | $2.7B | 10.8× EBITDA of $246M |
| Fees | $53.3M | 2% of the price |
| New debt | $1.4B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $1.4B | 50% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.7B | $239M | $103M | $108M | $1.2B |
| Year 2 | $1.7B | $235M | $95.2M | $111M | $1.1B |
| Year 3 | $1.7B | $235M | $86.7M | $117M | $1.0B |
| Year 4 | $1.7B | $238M | $77.7M | $124M | $892M |
| Year 5 | $1.7B | $246M | $68.2M | $133M | $759M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 9.8× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $2.4B | |
| − Debt left | $759M | |
| = Buyer's equity | $1.7B | |
| Money multiple | 1.21× | on $1.4B put in |
| Buyer's yearly return (IRR) | 3.9% |
Price against return
What the buyer makes at other premiums over today's $11.15; the IRR reaches 20% at $4.74 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $12.27 | 6.7% |
| 20% | $13.38 | 5.2% |
| 30% | $14.50 | 3.9% |
| 40% | $15.61 | 2.6% |
| 50% | $16.73 | 1.4% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.7B | |
| EBITDA, last 12 months | $246M | 14.1% of revenue |
| Depreciation and amortization | $141M | |
| Capital spending | $28.1M | |
| Debt | $1.6B | |
| Cash | $127M | |
| Share price | $11.15 | 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 -3.0% 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, Compass Diversified would cost about $14.77 a share, $1.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $13.38 | $1.0B |
| Median | 32.5% | $14.77 | $1.1B |
| High end (a quarter paid more) | 51.8% | $16.93 | $1.3B |
The odds, from history
Historically 4.1% of companies with its figures were bought within a year (0.81× the average). Its figures put it in decile 4 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.
Compass Diversified's latest quarter
Compass Diversified, Q3 2026: revenue $423M (-10% year over year), operating margin 7.5%, net earnings $21.5M, operating cash flow $51.6M. The chart follows the revenue to costs, profit and cash.
Questions
Is Compass Diversified being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Compass Diversified?
A leveraged buyout at today's price plus 30% ($14.50 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $4.74 a share (−58% against today's $11.15).
What would a takeover of Compass Diversified 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, Compass Diversified would cost about $14.77 a share, $1.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.