Filing Flows › Flex (FLEX) › Takeover & LBO
Is Flex (FLEX) a takeover target?
A leveraged buyout at today's price plus 30% ($86.75 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $50.97 a share (−24% against today's $66.73). Historically 1.8% of companies with its figures were bought within a year (0.36× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $86.75 | today's $66.73 plus 30% |
| × shares | 374.0 million | |
| = Equity value | $32.4B | |
| + Debt refinanced | $5.2B | |
| − Cash | $3.1B | |
| = Enterprise value | $34.6B | 16.2× EBITDA of $2.1B |
| Fees | $691M | 2% of the price |
| New debt | $11.7B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $23.6B | 67% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $33.4B | $2.3B | $896M | $23.8M | $11.7B |
| Year 2 | $35.7B | $2.5B | $894M | $108M | $11.6B |
| Year 3 | $37.6B | $2.6B | $886M | $196M | $11.4B |
| Year 4 | $39.2B | $2.7B | $871M | $285M | $11.1B |
| Year 5 | $40.4B | $2.8B | $849M | $374M | $10.7B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 12.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $35.4B | |
| − Debt left | $10.7B | |
| = Buyer's equity | $24.7B | |
| Money multiple | 1.05× | on $23.6B put in |
| Buyer's yearly return (IRR) | 0.9% |
Price against return
What the buyer makes at other premiums over today's $66.73; the IRR reaches 20% at $50.97 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $73.40 | 6.0% |
| 20% | $80.08 | 3.3% |
| 30% | $86.75 | 0.9% |
| 40% | $93.42 | −1.1% |
| 50% | $100.09 | −3.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $31.0B | |
| EBITDA, last 12 months | $2.1B | 6.9% of revenue |
| Depreciation and amortization | $562M | |
| Capital spending | $827M | |
| Debt | $5.2B | |
| Cash | $3.1B | |
| Share price | $66.73 | 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 30% 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, Flex would cost about $86.75 a share, $32.4B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $74.74 | $28.0B |
| Median | 30% | $86.75 | $32.4B |
| High end (a quarter paid more) | 31% | $87.42 | $32.7B |
The odds, from history
Historically 1.8% of companies with its figures were bought within a year (0.36× 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.
Flex's latest quarter
Flex, Q2 FY27: revenue $8.5B (+25% year over year), operating margin 4.9%, net earnings $263M, operating cash flow $501M. The chart follows the revenue to costs, profit and cash.
Questions
Is Flex being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Flex?
A leveraged buyout at today's price plus 30% ($86.75 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $50.97 a share (−24% against today's $66.73).
What would a takeover of Flex 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, Flex would cost about $86.75 a share, $32.4B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.