Filing Flows › FTI Consulting (FCN) › Takeover & LBO
Is FTI Consulting (FCN) a takeover target?
A leveraged buyout at today's price plus 30% ($237.69 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 $142.06 a share (−22% against today's $182.84). 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 | $237.69 | today's $182.84 plus 30% |
| × shares | 27.0 million | |
| = Equity value | $6.4B | |
| + Debt refinanced | $851M | |
| − Cash | $88.1M | |
| = Enterprise value | $7.2B | 17.9× EBITDA of $402M |
| Fees | $144M | 2% of the price |
| New debt | $2.2B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $5.1B | 70% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $4.3B | $433M | $169M | $136M | $2.1B |
| Year 2 | $4.6B | $461M | $159M | $166M | $1.9B |
| Year 3 | $4.8B | $486M | $146M | $196M | $1.7B |
| Year 4 | $5.0B | $507M | $131M | $225M | $1.5B |
| Year 5 | $5.2B | $522M | $114M | $253M | $1.2B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $7.4B | |
| − Debt left | $1.2B | |
| = Buyer's equity | $6.2B | |
| Money multiple | 1.21× | on $5.1B put in |
| Buyer's yearly return (IRR) | 3.8% |
Price against return
What the buyer makes at other premiums over today's $182.84; the IRR reaches 20% at $142.06 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $201.12 | 8.5% |
| 20% | $219.41 | 6.0% |
| 30% | $237.69 | 3.8% |
| 40% | $255.98 | 1.9% |
| 50% | $274.26 | 0.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $4.0B | |
| EBITDA, last 12 months | $402M | 10.1% of revenue |
| Depreciation and amortization | $49.5M | |
| Capital spending | $38.7M | |
| Debt | $851M | |
| Cash | $88.1M | |
| Share price | $182.84 | 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 7.8% 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, FTI Consulting would cost about $255.98 a share, $6.9B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $209.72 | $5.7B |
| Median | 40% | $255.98 | $6.9B |
| High end (a quarter paid more) | 60.2% | $292.91 | $7.9B |
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.
FTI Consulting's latest quarter
FTI Consulting, Q3 2026: revenue $1.0B (+6% year over year), operating margin 8.9%, net earnings $63.4M, operating cash flow $190M. The chart follows the revenue to costs, profit and cash.
Questions
Is FTI Consulting being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy FTI Consulting?
A leveraged buyout at today's price plus 30% ($237.69 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 $142.06 a share (−22% against today's $182.84).
What would a takeover of FTI Consulting 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, FTI Consulting would cost about $255.98 a share, $6.9B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.