Filing Flows › Ericsson LM Telephone (ERIC) › Takeover & LBO
Is Ericsson LM Telephone (ERIC) a takeover target?
A leveraged buyout at today's price plus 30% ($13.34 a share) would return about 68% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $45.74 a share (346% against today's $10.26).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $13.34 | today's $10.26 plus 30% |
| × shares | 3,240.4 million | |
| = Equity value | $43.2B | |
| + Debt refinanced | $0 | |
| − Cash | $0 | |
| = Enterprise value | $43.2B | 0.9× EBITDA of $47.5B |
| Fees | $864M | 2% of the price |
| New debt | $28.1B | 0.6× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $16.0B | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $243.8B | $49.0B | $2.1B | $34.0B | $0 |
| Year 2 | $251.1B | $50.4B | $0 | $36.7B | $0 |
| Year 3 | $258.6B | $52.0B | $0 | $37.8B | $0 |
| Year 4 | $266.4B | $53.5B | $0 | $38.9B | $0 |
| Year 5 | $274.4B | $55.1B | $0 | $40.1B | $0 |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 1.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $55.1B | |
| − Debt left | $0 | |
| + Cash built up | $159.2B | |
| = Buyer's equity | $214.4B | |
| Money multiple | 13.40× | on $16.0B put in |
| Buyer's yearly return (IRR) | 68.1% |
Price against return
What the buyer makes at other premiums over today's $10.26; the IRR reaches 20% at $45.74 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $11.29 | 74.5% |
| 20% | $12.31 | 71.1% |
| 30% | $13.34 | 68.1% |
| 40% | $14.36 | 65.2% |
| 50% | $15.39 | 62.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $236.7B | |
| EBITDA, last 12 months | $47.5B | 20.1% of revenue |
| Depreciation and amortization | $8.9B | |
| Capital spending | $2.6B | |
| Debt | $0 | |
| Cash | $0 | |
| Share price | $10.26 | 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 25% 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 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Ericsson LM Telephone would cost about $13.34 a share, $43.2B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $11.49 | $37.2B |
| Median | 30% | $13.34 | $43.2B |
| High end (a quarter paid more) | 31% | $13.44 | $43.6B |
Ericsson LM Telephone's latest quarter
Ericsson LM Telephone, Q3 2026: revenue $59.5B (+6% year over year), operating margin 14.9%, net earnings $5.8B, operating cash flow $6.5B. The chart follows the revenue to costs, profit and cash.
Questions
Is Ericsson LM Telephone being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Ericsson LM Telephone?
A leveraged buyout at today's price plus 30% ($13.34 a share) would return about 68% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $45.74 a share (346% against today's $10.26).
What would a takeover of Ericsson LM Telephone cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Ericsson LM Telephone would cost about $13.34 a share, $43.2B for all its shares.
Updated Nov 9, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.