Filing Flows › Firstenergy (FE) › Takeover & LBO
Is Firstenergy (FE) a takeover target?
A leveraged buyout at today's price plus 30% ($61.23 a share) would return a loss of about 5% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $8.38 a share (−82% against today's $47.10). At $65.9B 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. It already carries 7.2× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own. Historically 1.6% of companies with its figures were bought within a year (0.33× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $61.23 | today's $47.10 plus 30% |
| × shares | 579.0 million | |
| = Equity value | $35.5B | |
| + Debt refinanced | $29.0B | |
| − Cash | $63.0M | |
| + Other claims | $1.5B | preferred stock, minority interests |
| = Enterprise value | $65.9B | 16.5× EBITDA of $4.0B |
| Fees | $1.3B | 2% of the price |
| New debt | $22.0B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $45.2B | 67% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $17.1B | $4.3B | $1.7B | −$3.1B | $25.1B |
| Year 2 | $18.2B | $4.6B | $1.9B | −$3.4B | $28.5B |
| Year 3 | $19.2B | $4.9B | $2.2B | −$3.7B | $32.2B |
| Year 4 | $20.1B | $5.1B | $2.5B | −$4.0B | $36.2B |
| Year 5 | $20.7B | $5.2B | $2.8B | −$4.3B | $40.5B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $75.3B | |
| − Debt left | $40.5B | |
| = Buyer's equity | $34.8B | |
| Money multiple | 0.77× | on $45.2B put in |
| Buyer's yearly return (IRR) | −5.1% |
Price against return
What the buyer makes at other premiums over today's $47.10; the IRR reaches 20% at $8.38 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $51.81 | −2.6% |
| 20% | $56.52 | −3.9% |
| 30% | $61.23 | −5.1% |
| 40% | $65.94 | −6.2% |
| 50% | $70.65 | −7.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $15.8B | |
| EBITDA, last 12 months | $4.0B | 25.2% of revenue |
| Depreciation and amortization | $1.7B | |
| Capital spending | $5.1B | |
| Debt | $29.0B | |
| Cash | $63.0M | |
| Share price | $47.10 | 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 18% 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, Firstenergy would cost about $62.41 a share, $36.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $56.52 | $32.7B |
| Median | 32.5% | $62.41 | $36.1B |
| High end (a quarter paid more) | 51.8% | $71.50 | $41.4B |
The odds, from history
Historically 1.6% of companies with its figures were bought within a year (0.33× the average). Its figures put it in decile 1 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.
Firstenergy's latest quarter
Firstenergy, Q2 2026: revenue $3.7B (+9% year over year), operating margin 18.4%, net earnings $288M, operating cash flow $989M. The chart follows the revenue to costs, profit and cash.
Questions
Is Firstenergy being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Firstenergy?
A leveraged buyout at today's price plus 30% ($61.23 a share) would return a loss of about 5% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $8.38 a share (−82% against today's $47.10). At $65.9B 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. It already carries 7.2× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own.
What would a takeover of Firstenergy 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, Firstenergy would cost about $62.41 a share, $36.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.