Filing Flows › Flexsteel Industries (FLXS) › Takeover & LBO
Is Flexsteel Industries (FLXS) a takeover target?
A leveraged buyout at today's price plus 30% ($110.72 a share) would return about 3% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 4.6% of companies with its figures were bought within a year (0.91× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $110.72 | today's $85.17 plus 30% |
| × shares | 4.4 million | |
| = Equity value | $483M | |
| + Debt refinanced | $0 | |
| − Cash | $16.7M | |
| = Enterprise value | $467M | 10.5× EBITDA of $44.3M |
| Fees | $9.3M | 2% of the price |
| New debt | $244M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $232M | 49% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $478M | $45.8M | $18.6M | $15.9M | $228M |
| Year 2 | $494M | $47.3M | $17.4M | $17.8M | $210M |
| Year 3 | $510M | $48.8M | $16.1M | $19.9M | $190M |
| Year 4 | $526M | $50.3M | $14.5M | $22.1M | $168M |
| Year 5 | $542M | $51.8M | $12.9M | $24.4M | $144M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 8.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $416M | |
| − Debt left | $144M | |
| = Buyer's equity | $272M | |
| Money multiple | 1.17× | on $232M put in |
| Buyer's yearly return (IRR) | 3.2% |
Price against return
What the buyer makes at other premiums over today's $85.17.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $93.69 | 11.7% |
| 20% | $102.20 | 6.9% |
| 30% | $110.72 | 3.2% |
| 40% | $119.24 | 0.1% |
| 50% | $127.75 | −2.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $463M | |
| EBITDA, last 12 months | $44.3M | 9.6% of revenue |
| Depreciation and amortization | $3.8M | |
| Capital spending | $3.9M | |
| Debt | $0 | |
| Cash | $16.7M | |
| Share price | $85.17 | on Oct 9, 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 3.4% 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 24% 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, Flexsteel Industries would cost about $112.85 a share, $493M for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $102.20 | $446M |
| Median | 32.5% | $112.85 | $493M |
| High end (a quarter paid more) | 51.8% | $129.29 | $564M |
The odds, from history
Historically 4.6% of companies with its figures were bought within a year (0.91× the average). Its figures put it in decile 5 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.
Flexsteel Industries' latest quarter
Flexsteel Industries, Q1 FY27: revenue $114M (+3% year over year), operating margin 6.0%, net earnings $5.4M, operating cash flow −$1.5M. The chart follows the revenue to costs, profit and cash.
Questions
Is Flexsteel Industries being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Flexsteel Industries?
A leveraged buyout at today's price plus 30% ($110.72 a share) would return about 3% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Flexsteel Industries 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, Flexsteel Industries would cost about $112.85 a share, $493M for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.