Filing Flows › CRA International (CRAI) › Takeover & LBO
Is CRA International (CRAI) a takeover target?
A leveraged buyout at today's price plus 30% ($231.78 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 $155.27 a share (−13% against today's $178.29). 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 | $231.78 | today's $178.29 plus 30% |
| × shares | 6.4 million | |
| = Equity value | $1.5B | |
| + Debt refinanced | $0 | |
| − Cash | $21.4M | |
| = Enterprise value | $1.5B | 15.7× EBITDA of $93.3M |
| Fees | $29.3M | 2% of the price |
| New debt | $513M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $980M | 66% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $858M | $101M | $39.3M | $34.7M | $478M |
| Year 2 | $916M | $108M | $36.6M | $41.8M | $437M |
| Year 3 | $967M | $113M | $33.4M | $48.8M | $388M |
| Year 4 | $1.0B | $118M | $29.7M | $55.6M | $332M |
| Year 5 | $1.0B | $122M | $25.4M | $62.1M | $270M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 12.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.5B | |
| − Debt left | $270M | |
| = Buyer's equity | $1.2B | |
| Money multiple | 1.22× | on $980M put in |
| Buyer's yearly return (IRR) | 4.0% |
Price against return
What the buyer makes at other premiums over today's $178.29; the IRR reaches 20% at $155.27 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $196.12 | 9.8% |
| 20% | $213.95 | 6.7% |
| 30% | $231.78 | 4.0% |
| 40% | $249.61 | 1.7% |
| 50% | $267.44 | −0.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $795M | |
| EBITDA, last 12 months | $93.3M | 11.7% of revenue |
| Depreciation and amortization | $13.9M | |
| Capital spending | $6.0M | |
| Debt | $0 | |
| Cash | $21.4M | |
| Share price | $178.29 | on Oct 12, 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 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 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, CRA International would cost about $249.61 a share, $1.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $204.50 | $1.3B |
| Median | 40% | $249.61 | $1.6B |
| High end (a quarter paid more) | 60.2% | $285.62 | $1.8B |
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.
CRA International's latest quarter
CRA International, Q3 2026: revenue $215M (+16% year over year), operating margin 11.1%, net earnings $13.9M, operating cash flow $74.4M. The chart follows the revenue to costs, profit and cash.
Questions
Is CRA International being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy CRA International?
A leveraged buyout at today's price plus 30% ($231.78 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 $155.27 a share (−13% against today's $178.29).
What would a takeover of CRA International 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, CRA International would cost about $249.61 a share, $1.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.