Filing Flows › Cohu (COHU) › Takeover & LBO
Is Cohu (COHU) a takeover target?
A leveraged buyout at today's price plus 30% ($81.63 a share) would return a loss of about 0% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $81.63 | today's $62.79 plus 30% |
| × shares | 54.4 million | |
| = Equity value | $4.4B | |
| + Debt refinanced | $296M | |
| − Cash | $498M | |
| = Enterprise value | $4.2B | 134.8× EBITDA of $31.4M |
| Fees | $84.7M | 2% of the price |
| New debt | $173M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $4.1B | 96% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $615M | $33.9M | $13.2M | $3.6M | $169M |
| Year 2 | $656M | $36.2M | $13.0M | $5.7M | $164M |
| Year 3 | $692M | $38.2M | $12.5M | $7.9M | $156M |
| Year 4 | $722M | $39.9M | $11.9M | $10.2M | $145M |
| Year 5 | $744M | $41.0M | $11.1M | $12.5M | $133M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 102.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $4.2B | |
| − Debt left | $133M | |
| = Buyer's equity | $4.1B | |
| Money multiple | 0.98× | on $4.1B put in |
| Buyer's yearly return (IRR) | −0.4% |
Price against return
What the buyer makes at other premiums over today's $62.79.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $69.07 | 3.3% |
| 20% | $75.35 | 1.3% |
| 30% | $81.63 | −0.4% |
| 40% | $87.91 | −2.0% |
| 50% | $94.19 | −3.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $569M | |
| EBITDA, last 12 months | $31.4M | 5.5% of revenue |
| Depreciation and amortization | $45.0M | |
| Capital spending | $11.7M | |
| Debt | $296M | |
| Cash | $498M | |
| Share price | $62.79 | on Oct 13, 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 21% 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 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Cohu would cost about $87.91 a share, $4.8B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $72.02 | $3.9B |
| Median | 40% | $87.91 | $4.8B |
| High end (a quarter paid more) | 60.2% | $100.59 | $5.5B |
Cohu's latest quarter
Cohu, Q3 2026: revenue $173M (+37% year over year), operating margin 7.4%, net earnings $12.1M, operating cash flow $5.6M. The chart follows the revenue to costs, profit and cash.
Questions
Is Cohu being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Cohu?
A leveraged buyout at today's price plus 30% ($81.63 a share) would return a loss of about 0% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Cohu cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Cohu would cost about $87.91 a share, $4.8B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.