Filing Flows › DXP Enterprises (DXPE) › Takeover & LBO
Is DXP Enterprises (DXPE) a takeover target?
A leveraged buyout at today's price plus 30% ($226.80 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 $125.58 a share (−28% against today's $174.46). Historically 4.1% of companies with its figures were bought within a year (0.81× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $226.80 | today's $174.46 plus 30% |
| × shares | 16.4 million | |
| = Equity value | $3.7B | |
| + Debt refinanced | $823M | |
| − Cash | $219M | |
| = Enterprise value | $4.3B | 20.7× EBITDA of $209M |
| Fees | $86.3M | 2% of the price |
| New debt | $1.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.3B | 74% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.4B | $226M | $87.9M | $72.4M | $1.1B |
| Year 2 | $2.6B | $241M | $82.3M | $88.5M | $988M |
| Year 3 | $2.7B | $254M | $75.6M | $105M | $883M |
| Year 4 | $2.8B | $265M | $67.6M | $120M | $763M |
| Year 5 | $2.9B | $273M | $58.3M | $136M | $627M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 16.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $4.5B | |
| − Debt left | $627M | |
| = Buyer's equity | $3.9B | |
| Money multiple | 1.20× | on $3.3B put in |
| Buyer's yearly return (IRR) | 3.6% |
Price against return
What the buyer makes at other premiums over today's $174.46; the IRR reaches 20% at $125.58 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $191.91 | 7.8% |
| 20% | $209.35 | 5.6% |
| 30% | $226.80 | 3.6% |
| 40% | $244.24 | 1.9% |
| 50% | $261.69 | 0.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.2B | |
| EBITDA, last 12 months | $209M | 9.4% of revenue |
| Depreciation and amortization | $11.7M | |
| Capital spending | $13.4M | |
| Debt | $823M | |
| Cash | $219M | |
| Share price | $174.46 | 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 26% 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, DXP Enterprises would cost about $244.24 a share, $4.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $200.11 | $3.3B |
| Median | 40% | $244.24 | $4.0B |
| High end (a quarter paid more) | 60.2% | $279.48 | $4.6B |
The odds, from history
Historically 4.1% of companies with its figures were bought within a year (0.81× 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.
DXP Enterprises' latest quarter
DXP Enterprises, Q3 2026: revenue $587M (+14% year over year), operating margin 8.9%, net earnings $26.9M, operating cash flow $18.7M. The chart follows the revenue to costs, profit and cash.
Questions
Is DXP Enterprises being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy DXP Enterprises?
A leveraged buyout at today's price plus 30% ($226.80 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 $125.58 a share (−28% against today's $174.46).
What would a takeover of DXP Enterprises 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, DXP Enterprises would cost about $244.24 a share, $4.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.