Filing Flows › Globus Medical (GMED) › Takeover & LBO
Is Globus Medical (GMED) a takeover target?
A leveraged buyout at today's price plus 30% ($101.47 a share) would return about 5% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 2.4% of companies with its figures were bought within a year (0.47× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $101.47 | today's $78.05 plus 30% |
| × shares | 136.0 million | |
| = Equity value | $13.8B | |
| + Debt refinanced | $0 | |
| − Cash | $517M | |
| = Enterprise value | $13.3B | 13.9× EBITDA of $959M |
| Fees | $266M | 2% of the price |
| New debt | $5.3B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $8.3B | 61% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $3.4B | $1.0B | $403M | $368M | $4.9B |
| Year 2 | $3.6B | $1.1B | $375M | $441M | $4.5B |
| Year 3 | $3.8B | $1.2B | $342M | $513M | $4.0B |
| Year 4 | $4.0B | $1.2B | $302M | $582M | $3.4B |
| Year 5 | $4.1B | $1.3B | $258M | $647M | $2.7B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 10.5× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $13.2B | |
| − Debt left | $2.7B | |
| = Buyer's equity | $10.5B | |
| Money multiple | 1.26× | on $8.3B put in |
| Buyer's yearly return (IRR) | 4.8% |
Price against return
What the buyer makes at other premiums over today's $78.05.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $85.86 | 11.4% |
| 20% | $93.66 | 7.8% |
| 30% | $101.47 | 4.8% |
| 40% | $109.27 | 2.3% |
| 50% | $117.07 | 0.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $3.1B | |
| EBITDA, last 12 months | $959M | 30.5% of revenue |
| Depreciation and amortization | $279M | |
| Capital spending | $159M | |
| Debt | $0 | |
| Cash | $517M | |
| Share price | $78.05 | 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 20% 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, Globus Medical would cost about $105.37 a share, $14.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $95.22 | $13.0B |
| Median | 35% | $105.37 | $14.3B |
| High end (a quarter paid more) | 45% | $113.17 | $15.4B |
The odds, from history
Historically 2.4% of companies with its figures were bought within a year (0.47× the average). Its figures put it in decile 1 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.
Globus Medical's latest quarter
Globus Medical, Q3 2026: revenue $764M (-0.7% year over year), operating margin 23.2%, net earnings $141M, operating cash flow $265M. The chart follows the revenue to costs, profit and cash.
Questions
Is Globus Medical being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Globus Medical?
A leveraged buyout at today's price plus 30% ($101.47 a share) would return about 5% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Globus Medical 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, Globus Medical would cost about $105.37 a share, $14.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.