Filing Flows › Danaher (DHR) › Takeover & LBO
Is Danaher (DHR) a takeover target?
A leveraged buyout at today's price plus 30% ($298.58 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $144.67 a share (−37% against today's $229.68). At $231.9B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect. Historically 4.0% of companies with its figures were bought within a year (0.79× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $298.58 | today's $229.68 plus 30% |
| × shares | 706.8 million | |
| = Equity value | $211.0B | |
| + Debt refinanced | $26.5B | |
| − Cash | $5.7B | |
| + Other claims | $12.0M | preferred stock, minority interests |
| = Enterprise value | $231.9B | 29.5× EBITDA of $7.8B |
| Fees | $4.6B | 2% of the price |
| New debt | $43.2B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $193.3B | 82% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $27.0B | $8.3B | $3.3B | $3.4B | $39.8B |
| Year 2 | $28.3B | $8.7B | $3.0B | $3.9B | $35.9B |
| Year 3 | $29.6B | $9.1B | $2.7B | $4.5B | $31.4B |
| Year 4 | $30.6B | $9.4B | $2.4B | $5.1B | $26.3B |
| Year 5 | $31.5B | $9.7B | $2.0B | $5.6B | $20.7B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 23.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $225.6B | |
| − Debt left | $20.7B | |
| = Buyer's equity | $204.9B | |
| Money multiple | 1.06× | on $193.3B put in |
| Buyer's yearly return (IRR) | 1.2% |
Price against return
What the buyer makes at other premiums over today's $229.68; the IRR reaches 20% at $144.67 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $252.65 | 5.0% |
| 20% | $275.62 | 3.0% |
| 30% | $298.58 | 1.2% |
| 40% | $321.55 | −0.5% |
| 50% | $344.52 | −2.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $25.6B | |
| EBITDA, last 12 months | $7.8B | 30.6% of revenue |
| Depreciation and amortization | $2.6B | |
| Capital spending | $1.1B | |
| Debt | $26.5B | |
| Cash | $5.7B | |
| Share price | $229.68 | 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 5.5% 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 12% 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, Danaher would cost about $321.55 a share, $227.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $263.44 | $186.2B |
| Median | 40% | $321.55 | $227.3B |
| High end (a quarter paid more) | 60.2% | $367.95 | $260.1B |
The odds, from history
Historically 4.0% of companies with its figures were bought within a year (0.79× 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.
Danaher's latest quarter
Danaher, Q3 2026: revenue $6.6B (+8% year over year), operating margin 19.0%, net earnings $1.2B, operating cash flow $1.9B. The chart follows the revenue to costs, profit and cash.
Questions
Is Danaher being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Danaher?
A leveraged buyout at today's price plus 30% ($298.58 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $144.67 a share (−37% against today's $229.68). At $231.9B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect.
What would a takeover of Danaher 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, Danaher would cost about $321.55 a share, $227.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.