Filing Flows › Entergy (ETR) › Takeover & LBO
Is Entergy (ETR) a takeover target?
A leveraged buyout at today's price plus 30% ($144.17 a share) would return a loss of about 9% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $33.47 a share (−70% against today's $110.90). At $97.2B 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 2.8% of companies with its figures were bought within a year (0.56× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $144.17 | today's $110.90 plus 30% |
| × shares | 462.5 million | |
| = Equity value | $66.7B | |
| + Debt refinanced | $34.1B | |
| − Cash | $3.6B | |
| = Enterprise value | $97.2B | 18.0× EBITDA of $5.4B |
| Fees | $1.9B | 2% of the price |
| New debt | $29.8B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $69.4B | 70% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $14.4B | $5.8B | $2.3B | −$5.7B | $35.5B |
| Year 2 | $15.3B | $6.2B | $2.7B | −$6.3B | $41.7B |
| Year 3 | $16.2B | $6.6B | $3.2B | −$6.9B | $48.6B |
| Year 4 | $16.8B | $6.9B | $3.7B | −$7.5B | $56.1B |
| Year 5 | $17.4B | $7.1B | $4.3B | −$8.1B | $64.2B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 15.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $106.8B | |
| − Debt left | $64.2B | |
| = Buyer's equity | $42.6B | |
| Money multiple | 0.61× | on $69.4B put in |
| Buyer's yearly return (IRR) | −9.3% |
Price against return
What the buyer makes at other premiums over today's $110.90; the IRR reaches 20% at $33.47 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $121.99 | −6.3% |
| 20% | $133.08 | −7.8% |
| 30% | $144.17 | −9.3% |
| 40% | $155.26 | −10.6% |
| 50% | $166.35 | −11.8% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $13.3B | |
| EBITDA, last 12 months | $5.4B | 40.7% of revenue |
| Depreciation and amortization | $2.3B | |
| Capital spending | $8.3B | |
| Debt | $34.1B | |
| Cash | $3.6B | |
| Share price | $110.90 | 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 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 21% 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, Entergy would cost about $146.94 a share, $68.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $133.08 | $61.6B |
| Median | 32.5% | $146.94 | $68.0B |
| High end (a quarter paid more) | 51.8% | $168.35 | $77.9B |
The odds, from history
Historically 2.8% of companies with its figures were bought within a year (0.56× the average). Its figures put it in decile 2 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.
Entergy's latest quarter
Entergy, Q1 2026: revenue $3.2B (+12% year over year), operating margin 18.0%, net earnings $385M, operating cash flow $829M. The chart follows the revenue to costs, profit and cash.
Questions
Is Entergy being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Entergy?
A leveraged buyout at today's price plus 30% ($144.17 a share) would return a loss of about 9% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $33.47 a share (−70% against today's $110.90). At $97.2B 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 Entergy 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, Entergy would cost about $146.94 a share, $68.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.