Filing Flows › Fortrea Holdings (FTRE) › Takeover & LBO
Is Fortrea Holdings (FTRE) a takeover target?
A leveraged buyout at today's price plus 30% ($27.68 a share) would return a loss of about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $6.66 a share (−69% against today's $21.29). It already carries 9.1× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own. Historically 7.4% of companies with its figures were bought within a year (1.48× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $27.68 | today's $21.29 plus 30% |
| × shares | 101.2 million | |
| = Equity value | $2.8B | |
| + Debt refinanced | $1.1B | |
| − Cash | $221M | |
| = Enterprise value | $3.6B | 39.7× EBITDA of $91.5M |
| Fees | $72.7M | 2% of the price |
| New debt | $503M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.2B | 86% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.6B | $88.8M | $38.5M | $18.4M | $485M |
| Year 2 | $2.5B | $87.4M | $37.1M | $19.0M | $466M |
| Year 3 | $2.5B | $87.4M | $35.6M | $20.5M | $445M |
| Year 4 | $2.6B | $88.7M | $34.1M | $19.0M | $426M |
| Year 5 | $2.7B | $91.4M | $32.6M | $18.3M | $408M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 32.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $3.0B | |
| − Debt left | $408M | |
| = Buyer's equity | $2.6B | |
| Money multiple | 0.80× | on $3.2B put in |
| Buyer's yearly return (IRR) | −4.3% |
Price against return
What the buyer makes at other premiums over today's $21.29; the IRR reaches 20% at $6.66 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $23.42 | −1.4% |
| 20% | $25.55 | −2.9% |
| 30% | $27.68 | −4.3% |
| 40% | $29.81 | −5.5% |
| 50% | $31.93 | −6.7% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.7B | |
| EBITDA, last 12 months | $91.5M | 3.4% of revenue |
| Depreciation and amortization | $78.7M | |
| Capital spending | $32.8M | |
| Debt | $1.1B | |
| Cash | $221M | |
| Share price | $21.29 | 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 -3.0% 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 in its sector paid a median premium of 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Fortrea Holdings would cost about $28.74 a share, $2.9B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $25.97 | $2.6B |
| Median | 35% | $28.74 | $2.9B |
| High end (a quarter paid more) | 45% | $30.87 | $3.1B |
The odds, from history
Historically 7.4% of companies with its figures were bought within a year (1.48× the average). Its figures put it in decile 9 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.
Fortrea Holdings' latest quarter
Fortrea Holdings, Q3 2026: revenue $692M (-1% year over year), operating margin 2.2%, net earnings $600K, operating cash flow $60.8M. The chart follows the revenue to costs, profit and cash.
Questions
Is Fortrea Holdings being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Fortrea Holdings?
A leveraged buyout at today's price plus 30% ($27.68 a share) would return a loss of about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $6.66 a share (−69% against today's $21.29). It already carries 9.1× 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 Fortrea Holdings cost?
Takeovers in its sector paid a median premium of 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Fortrea Holdings would cost about $28.74 a share, $2.9B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.