Filing Flows › Great Elm Group (GEG) › Takeover & LBO
Is Great Elm Group (GEG) a takeover target?
A leveraged buyout does not work for Great Elm Group on its latest figures: it has no positive EBITDA to borrow against (−$12.5M over the last 12 months, on revenue of $20.3M).
Why a leveraged buyout does not fit
A leveraged buyout is paid for mostly with debt that the company's own cash flow repays. Great Elm Group's EBITDA over the last 12 months was −$12.5M on revenue of $20.3M, so there is nothing to lend against and nothing to repay a loan with: a buyer would have to pay almost entirely with its own money. That is the kind of deal another company — a strategic buyer that wants the products, the pipeline or the technology — makes, not a private-equity fund. The model therefore gives no buyout price.
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, Great Elm Group would cost about $2.79 a share, $83.1M for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $2.41 | $71.6M |
| Median | 30% | $2.79 | $83.1M |
| High end (a quarter paid more) | 31% | $2.82 | $83.7M |
Great Elm Group's latest quarter
Great Elm Group, Q1 FY27: revenue $3.3M (-69% year over year), operating margin -104.5%, net loss $4.1M, operating cash flow −$10.6M. The chart follows the revenue to costs, profit and cash.
Questions
Is Great Elm Group being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Great Elm Group?
A leveraged buyout does not work for Great Elm Group on its latest figures: it has no positive EBITDA to borrow against (−$12.5M over the last 12 months, on revenue of $20.3M). With no cash flow to repay a loan, a buyer would pay almost entirely with its own money: a deal for another company (a strategic buyer), not for a private-equity fund.
What would a takeover of Great Elm Group 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, Great Elm Group would cost about $2.79 a share, $83.1M for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.