Filing Flows › Copart (CPRT) › Takeover & LBO
Is Copart (CPRT) a takeover target?
A leveraged buyout at today's price plus 30% ($41.48 a share) would return a loss of about 3% 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 | $41.48 | today's $31.91 plus 30% |
| × shares | 942.8 million | |
| = Equity value | $39.1B | |
| + Debt refinanced | $0 | |
| − Cash | $1.9B | |
| = Enterprise value | $37.2B | 19.7× EBITDA of $1.9B |
| Fees | $744M | 2% of the price |
| New debt | $10.4B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $27.5B | 73% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $4.7B | $1.9B | $796M | $591M | $9.8B |
| Year 2 | $4.7B | $1.9B | $750M | $637M | $9.2B |
| Year 3 | $4.8B | $2.0B | $702M | $695M | $8.5B |
| Year 4 | $4.9B | $2.0B | $649M | $764M | $7.7B |
| Year 5 | $5.1B | $2.1B | $590M | $847M | $6.9B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.9× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $30.7B | |
| − Debt left | $6.9B | |
| = Buyer's equity | $23.8B | |
| Money multiple | 0.86× | on $27.5B put in |
| Buyer's yearly return (IRR) | −2.9% |
Price against return
What the buyer makes at other premiums over today's $31.91.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $35.10 | 2.1% |
| 20% | $38.29 | −0.6% |
| 30% | $41.48 | −2.9% |
| 40% | $44.67 | −4.9% |
| 50% | $47.87 | −6.7% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $4.7B | |
| EBITDA, last 12 months | $1.9B | 40.5% of revenue |
| Depreciation and amortization | $238M | |
| Capital spending | $342M | |
| Debt | $0 | |
| Cash | $1.9B | |
| Share price | $31.91 | 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 0.4% 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 19% 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, Copart would cost about $42.28 a share, $39.9B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $38.29 | $36.1B |
| Median | 32.5% | $42.28 | $39.9B |
| High end (a quarter paid more) | 51.8% | $48.44 | $45.7B |
Copart's latest quarter
Copart, Q4 FY26: revenue $1.2B (+2% year over year), operating margin 32.0%, net earnings $327M, operating cash flow $358M. The chart follows the revenue to costs, profit and cash.
Questions
Is Copart being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Copart?
A leveraged buyout at today's price plus 30% ($41.48 a share) would return a loss of about 3% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Copart 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, Copart would cost about $42.28 a share, $39.9B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.