Filing Flows › Genesco (GCO) › Takeover & LBO
Is Genesco (GCO) a takeover target?
A leveraged buyout does not work for Genesco on its latest figures: its EBITDA margin is only 2.9% ($70.6M on revenue of $2.4B), too thin to carry buyout debt. Historically 4.4% of companies with its figures were bought within a year (0.88× the average).
Why a leveraged buyout does not fit
Genesco kept 2.9% of its revenue as EBITDA over the last 12 months ($70.6M on $2.4B). A margin that thin cannot carry the debt a leveraged buyout needs — a small dip in sales would leave nothing for interest — so the model gives no buyout price.
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, Genesco would cost about $49.89 a share, $532M for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $45.18 | $482M |
| Median | 32.5% | $49.89 | $532M |
| High end (a quarter paid more) | 51.8% | $57.15 | $610M |
The odds, from history
Historically 4.4% of companies with its figures were bought within a year (0.88× 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.
Genesco's latest quarter
Genesco, Q2 FY27: revenue $530M (-3% year over year), operating margin 0.7%, net earnings $3.5M, operating cash flow $76.4M. The chart follows the revenue to costs, profit and cash.
Questions
Is Genesco being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Genesco?
A leveraged buyout does not work for Genesco on its latest figures: its EBITDA margin is only 2.9% ($70.6M on revenue of $2.4B), too thin to carry buyout debt. A margin that thin leaves almost nothing to pay interest with, so buyout debt does not fit.
What would a takeover of Genesco 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, Genesco would cost about $49.89 a share, $532M for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.