Filing Flows › DTE Energy (DTE) › Takeover & LBO
Is DTE Energy (DTE) a takeover target?
A leveraged buyout at today's price plus 30% ($176.14 a share) would return about 10% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $106.82 a share (−21% against today's $135.49). At $61.9B 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. It already carries 6.1× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $176.14 | today's $135.49 plus 30% |
| × shares | 208.0 million | |
| = Equity value | $36.6B | |
| + Debt refinanced | $25.3B | |
| − Cash | $42.0M | |
| + Other claims | $5.0M | preferred stock, minority interests |
| = Enterprise value | $61.9B | 15.1× EBITDA of $4.1B |
| Fees | $1.2B | 2% of the price |
| New debt | $22.6B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $40.5B | 64% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $17.8B | $4.4B | $1.7B | $2.5B | $20.1B |
| Year 2 | $19.0B | $4.7B | $1.5B | $3.0B | $17.2B |
| Year 3 | $20.0B | $5.0B | $1.3B | $3.4B | $13.7B |
| Year 4 | $20.9B | $5.2B | $1.1B | $3.9B | $9.9B |
| Year 5 | $21.5B | $5.4B | $754M | $4.3B | $5.6B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 13.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $69.8B | |
| − Debt left | $5.6B | |
| = Buyer's equity | $64.3B | |
| Money multiple | 1.59× | on $40.5B put in |
| Buyer's yearly return (IRR) | 9.7% |
Price against return
What the buyer makes at other premiums over today's $135.49; the IRR reaches 20% at $106.82 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $149.04 | 13.1% |
| 20% | $162.59 | 11.3% |
| 30% | $176.14 | 9.7% |
| 40% | $189.69 | 8.2% |
| 50% | $203.24 | 6.8% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $16.5B | |
| EBITDA, last 12 months | $4.1B | 25.0% of revenue |
| Depreciation and amortization | $1.9B | |
| Debt | $25.3B | |
| Cash | $42.0M | |
| Share price | $135.49 | on Oct 30, 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 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 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, DTE Energy would cost about $179.52 a share, $37.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $162.59 | $33.8B |
| Median | 32.5% | $179.52 | $37.3B |
| High end (a quarter paid more) | 51.8% | $205.67 | $42.8B |
DTE Energy's latest quarter
DTE Energy, Q3 2026: revenue $3.7B (+6% year over year), operating margin 16.2%, net earnings $470M, operating cash flow $768M. The chart follows the revenue to costs, profit and cash.
Questions
Is DTE Energy being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy DTE Energy?
A leveraged buyout at today's price plus 30% ($176.14 a share) would return about 10% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $106.82 a share (−21% against today's $135.49). At $61.9B 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. It already carries 6.1× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own.
What would a takeover of DTE Energy 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, DTE Energy would cost about $179.52 a share, $37.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.