Filing Flows › Generac Holdings (GNRC) › Takeover & LBO
Is Generac Holdings (GNRC) a takeover target?
A leveraged buyout at today's price plus 30% ($228.98 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $125.17 a share (−29% against today's $176.14). Historically 3.2% of companies with its figures were bought within a year (0.64× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $228.98 | today's $176.14 plus 30% |
| × shares | 59.6 million | |
| = Equity value | $13.6B | |
| + Debt refinanced | $1.3B | |
| − Cash | $394M | |
| + Other claims | $7K | preferred stock, minority interests |
| = Enterprise value | $14.5B | 20.7× EBITDA of $702M |
| Fees | $290M | 2% of the price |
| New debt | $3.9B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $10.9B | 74% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $4.9B | $745M | $295M | $170M | $3.7B |
| Year 2 | $5.2B | $785M | $282M | $204M | $3.5B |
| Year 3 | $5.4B | $820M | $267M | $239M | $3.2B |
| Year 4 | $5.6B | $851M | $248M | $273M | $3.0B |
| Year 5 | $5.8B | $877M | $227M | $307M | $2.7B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 16.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $14.2B | |
| − Debt left | $2.7B | |
| = Buyer's equity | $11.5B | |
| Money multiple | 1.05× | on $10.9B put in |
| Buyer's yearly return (IRR) | 1.1% |
Price against return
What the buyer makes at other premiums over today's $176.14; the IRR reaches 20% at $125.17 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $193.76 | 5.6% |
| 20% | $211.37 | 3.2% |
| 30% | $228.98 | 1.1% |
| 40% | $246.60 | −0.8% |
| 50% | $264.21 | −2.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $4.6B | |
| EBITDA, last 12 months | $702M | 15.2% of revenue |
| Depreciation and amortization | $223M | |
| Capital spending | $186M | |
| Debt | $1.3B | |
| Cash | $394M | |
| Share price | $176.14 | on Nov 6, 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 6.1% 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 25% 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 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Generac Holdings would cost about $246.60 a share, $14.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $202.03 | $12.0B |
| Median | 40% | $246.60 | $14.7B |
| High end (a quarter paid more) | 60.2% | $282.18 | $16.8B |
The odds, from history
Historically 3.2% of companies with its figures were bought within a year (0.64× the average). Its figures put it in decile 3 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.
Generac Holdings' latest quarter
Generac Holdings, Q3 2026: revenue $1.3B (+16% year over year), operating margin 12.4%, net earnings $109M, operating cash flow $171M. The chart follows the revenue to costs, profit and cash.
Questions
Is Generac Holdings being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Generac Holdings?
A leveraged buyout at today's price plus 30% ($228.98 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $125.17 a share (−29% against today's $176.14).
What would a takeover of Generac Holdings cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Generac Holdings would cost about $246.60 a share, $14.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.