Filing Flows › Consolidated Edison (ED) › Takeover & LBO
Is Consolidated Edison (ED) a takeover target?
A leveraged buyout at today's price plus 30% ($157.87 a share) would return about 5% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $89.37 a share (−26% against today's $121.44). At $83.2B 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 3.4% of companies with its figures were bought within a year (0.69× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $157.87 | today's $121.44 plus 30% |
| × shares | 364.4 million | |
| = Equity value | $57.5B | |
| + Debt refinanced | $25.8B | |
| − Cash | $100M | |
| = Enterprise value | $83.2B | 14.5× EBITDA of $5.7B |
| Fees | $1.7B | 2% of the price |
| New debt | $31.5B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $53.4B | 63% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $18.6B | $5.9B | $2.4B | $3.2B | $28.2B |
| Year 2 | $19.2B | $6.1B | $2.2B | $3.6B | $24.7B |
| Year 3 | $19.7B | $6.3B | $1.9B | $4.0B | $20.7B |
| Year 4 | $20.3B | $6.4B | $1.6B | $4.4B | $16.3B |
| Year 5 | $21.0B | $6.6B | $1.2B | $4.8B | $11.5B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 12.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $81.1B | |
| − Debt left | $11.5B | |
| = Buyer's equity | $69.6B | |
| Money multiple | 1.30× | on $53.4B put in |
| Buyer's yearly return (IRR) | 5.4% |
Price against return
What the buyer makes at other premiums over today's $121.44; the IRR reaches 20% at $89.37 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $133.58 | 9.4% |
| 20% | $145.73 | 7.3% |
| 30% | $157.87 | 5.4% |
| 40% | $170.02 | 3.7% |
| 50% | $182.16 | 2.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $18.1B | |
| EBITDA, last 12 months | $5.7B | 31.7% of revenue |
| Depreciation and amortization | $2.3B | |
| Debt | $25.8B | |
| Cash | $100M | |
| Share price | $121.44 | 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 3.0% 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 19% 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, Consolidated Edison would cost about $160.91 a share, $58.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $145.73 | $53.1B |
| Median | 32.5% | $160.91 | $58.6B |
| High end (a quarter paid more) | 51.8% | $184.35 | $67.2B |
The odds, from history
Historically 3.4% of companies with its figures were bought within a year (0.69× the average). Its figures put it in decile 3 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.
Consolidated Edison's latest quarter
Consolidated Edison, Q3 2026: revenue $4.9B (+8% year over year), operating margin 23.8%, net earnings $766M, operating cash flow $854M. The chart follows the revenue to costs, profit and cash.
Questions
Is Consolidated Edison being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Consolidated Edison?
A leveraged buyout at today's price plus 30% ($157.87 a share) would return about 5% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $89.37 a share (−26% against today's $121.44). At $83.2B 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 Consolidated Edison 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, Consolidated Edison would cost about $160.91 a share, $58.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.