Filing Flows › Formfactor (FORM) › Takeover & LBO
Is Formfactor (FORM) a takeover target?
A leveraged buyout at today's price plus 30% ($126.93 a share) would return about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 4.0% of companies with its figures were bought within a year (0.8× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $126.93 | today's $97.64 plus 30% |
| × shares | 79.4 million | |
| = Equity value | $10.1B | |
| + Debt refinanced | $11.6M | |
| − Cash | $346M | |
| = Enterprise value | $9.8B | 45.0× EBITDA of $217M |
| Fees | $195M | 2% of the price |
| New debt | $1.2B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $8.8B | 88% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.1B | $234M | $91.3M | $75.7M | $1.1B |
| Year 2 | $1.1B | $250M | $85.5M | $92.6M | $1.0B |
| Year 3 | $1.2B | $264M | $78.4M | $109M | $915M |
| Year 4 | $1.2B | $275M | $70.0M | $126M | $789M |
| Year 5 | $1.3B | $283M | $60.4M | $141M | $648M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 34.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $9.7B | |
| − Debt left | $648M | |
| = Buyer's equity | $9.0B | |
| Money multiple | 1.03× | on $8.8B put in |
| Buyer's yearly return (IRR) | 0.7% |
Price against return
What the buyer makes at other premiums over today's $97.64.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $107.40 | 4.8% |
| 20% | $117.17 | 2.6% |
| 30% | $126.93 | 0.7% |
| 40% | $136.70 | −1.1% |
| 50% | $146.46 | −2.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $980M | |
| EBITDA, last 12 months | $217M | 22.1% of revenue |
| Depreciation and amortization | $37.3M | |
| Capital spending | $43.6M | |
| Debt | $11.6M | |
| Cash | $346M | |
| Share price | $97.64 | on Oct 22, 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 12% 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, Formfactor would cost about $126.93 a share, $10.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $109.36 | $8.7B |
| Median | 30% | $126.93 | $10.1B |
| High end (a quarter paid more) | 31% | $127.91 | $10.2B |
The odds, from history
Historically 4.0% of companies with its figures were bought within a year (0.8× the average). Its figures put it in decile 4 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.
Formfactor's latest quarter
Formfactor, Q3 2026: revenue $281M (+38% year over year), operating margin 29.1%, net earnings $73.8M, operating cash flow $104M. The chart follows the revenue to costs, profit and cash.
Questions
Is Formfactor being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Formfactor?
A leveraged buyout at today's price plus 30% ($126.93 a share) would return about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Formfactor 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, Formfactor would cost about $126.93 a share, $10.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.