Filing Flows › Franco Nevada (FNV) › Takeover & LBO
Is Franco Nevada (FNV) a takeover target?
A leveraged buyout at today's price plus 30% ($292.44 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $155.96 a share (−31% against today's $224.95).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $292.44 | today's $224.95 plus 30% |
| × shares | 192.8 million | |
| = Equity value | $56.4B | |
| + Debt refinanced | $0 | |
| − Cash | $0 | |
| = Enterprise value | $56.4B | 33.9× EBITDA of $1.7B |
| Fees | $1.1B | 2% of the price |
| New debt | $9.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $48.4B | 84% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.0B | $1.8B | $699M | $914M | $8.2B |
| Year 2 | $2.1B | $1.9B | $629M | $1.1B | $7.2B |
| Year 3 | $2.2B | $2.0B | $547M | $1.2B | $5.9B |
| Year 4 | $2.3B | $2.1B | $454M | $1.4B | $4.6B |
| Year 5 | $2.4B | $2.2B | $349M | $1.5B | $3.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 26.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $56.6B | |
| − Debt left | $3.1B | |
| = Buyer's equity | $53.6B | |
| Money multiple | 1.11× | on $48.4B put in |
| Buyer's yearly return (IRR) | 2.1% |
Price against return
What the buyer makes at other premiums over today's $224.95; the IRR reaches 20% at $155.96 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $247.45 | 6.3% |
| 20% | $269.94 | 4.0% |
| 30% | $292.44 | 2.1% |
| 40% | $314.93 | 0.3% |
| 50% | $337.42 | −1.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.8B | |
| EBITDA, last 12 months | $1.7B | 91.1% of revenue |
| Depreciation and amortization | $307M | |
| Capital spending | $2.4M | |
| Debt | $0 | |
| Cash | $0 | |
| Share price | $224.95 | 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 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, Franco Nevada would cost about $298.06 a share, $57.5B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $269.94 | $52.0B |
| Median | 32.5% | $298.06 | $57.5B |
| High end (a quarter paid more) | 51.8% | $341.47 | $65.8B |
Franco Nevada's latest quarter
Franco Nevada, Q2 2025: revenue $369M (+42% year over year), operating margin 82.8%, net earnings $247M, operating cash flow $430M. The chart follows the revenue to costs, profit and cash.
Questions
Is Franco Nevada being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Franco Nevada?
A leveraged buyout at today's price plus 30% ($292.44 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $155.96 a share (−31% against today's $224.95).
What would a takeover of Franco Nevada 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, Franco Nevada would cost about $298.06 a share, $57.5B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.