Filing Flows › Deckers Outdoor (DECK) › Takeover & LBO
Is Deckers Outdoor (DECK) a takeover target?
A leveraged buyout at today's price plus 30% ($112.84 a share) would return about 6% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 1.9% of companies with its figures were bought within a year (0.37× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $112.84 | today's $86.80 plus 30% |
| × shares | 135.3 million | |
| = Equity value | $15.3B | |
| + Debt refinanced | $0 | |
| − Cash | $1.2B | |
| = Enterprise value | $14.1B | 10.1× EBITDA of $1.4B |
| Fees | $281M | 2% of the price |
| New debt | $7.6B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $6.7B | 47% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $5.9B | $1.5B | $584M | $541M | $7.1B |
| Year 2 | $6.3B | $1.6B | $543M | $627M | $6.5B |
| Year 3 | $6.5B | $1.6B | $495M | $714M | $5.8B |
| Year 4 | $6.8B | $1.7B | $440M | $799M | $5.0B |
| Year 5 | $7.0B | $1.7B | $379M | $881M | $4.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 7.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $13.2B | |
| − Debt left | $4.1B | |
| = Buyer's equity | $9.2B | |
| Money multiple | 1.37× | on $6.7B put in |
| Buyer's yearly return (IRR) | 6.4% |
Price against return
What the buyer makes at other premiums over today's $86.80.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $95.48 | 16.2% |
| 20% | $104.16 | 10.7% |
| 30% | $112.84 | 6.4% |
| 40% | $121.52 | 3.0% |
| 50% | $130.20 | 0.1% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $5.6B | |
| EBITDA, last 12 months | $1.4B | 24.9% of revenue |
| Depreciation and amortization | $72.6M | |
| Capital spending | $75.9M | |
| Debt | $0 | |
| Cash | $1.2B | |
| Share price | $86.80 | 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 6.3% 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 29% 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, Deckers Outdoor would cost about $115.01 a share, $15.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $104.16 | $14.1B |
| Median | 32.5% | $115.01 | $15.6B |
| High end (a quarter paid more) | 51.8% | $131.76 | $17.8B |
The odds, from history
Historically 1.9% of companies with its figures were bought within a year (0.37× the average). Its figures put it in decile 1 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.
Deckers Outdoor's latest quarter
Deckers Outdoor, Q2 FY27: revenue $1.5B (+4% year over year), operating margin 26.3%, net earnings $313M, operating cash flow −$57.2M. The chart follows the revenue to costs, profit and cash.
Questions
Is Deckers Outdoor being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Deckers Outdoor?
A leveraged buyout at today's price plus 30% ($112.84 a share) would return about 6% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Deckers Outdoor 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, Deckers Outdoor would cost about $115.01 a share, $15.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.