Filing Flows › Gentex (GNTX) › Takeover & LBO
Is Gentex (GNTX) a takeover target?
A leveraged buyout at today's price plus 30% ($25.83 a share) would return about 12% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 3.2% of companies with its figures were bought within a year (0.63× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $25.83 | today's $19.87 plus 30% |
| × shares | 204.8 million | |
| = Equity value | $5.3B | |
| + Debt refinanced | $0 | |
| − Cash | $146M | |
| = Enterprise value | $5.1B | 8.5× EBITDA of $602M |
| Fees | $103M | 2% of the price |
| New debt | $3.3B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $1.9B | 37% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.8B | $649M | $254M | $241M | $3.1B |
| Year 2 | $3.0B | $691M | $235M | $289M | $2.8B |
| Year 3 | $3.2B | $728M | $213M | $336M | $2.4B |
| Year 4 | $3.3B | $759M | $187M | $383M | $2.1B |
| Year 5 | $3.4B | $781M | $158M | $428M | $1.6B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 6.5× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $5.1B | |
| − Debt left | $1.6B | |
| = Buyer's equity | $3.5B | |
| Money multiple | 1.78× | on $1.9B put in |
| Buyer's yearly return (IRR) | 12.3% |
Price against return
What the buyer makes at other premiums over today's $19.87.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $21.86 | 20.9% |
| 20% | $23.84 | 16.6% |
| 30% | $25.83 | 12.3% |
| 40% | $27.82 | 8.0% |
| 50% | $29.80 | 4.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.6B | |
| EBITDA, last 12 months | $602M | 23.0% of revenue |
| Depreciation and amortization | $102M | |
| Capital spending | $81.9M | |
| Debt | $0 | |
| Cash | $146M | |
| Share price | $19.87 | 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 7.7% 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 16% 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 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, Gentex would cost about $26.33 a share, $5.4B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $23.84 | $4.9B |
| Median | 32.5% | $26.33 | $5.4B |
| High end (a quarter paid more) | 51.8% | $30.16 | $6.2B |
The odds, from history
Historically 3.2% of companies with its figures were bought within a year (0.63× the average). Its figures put it in decile 2 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.
Gentex's latest quarter
Gentex, Q3 2026: revenue $648M (-1% year over year), operating margin 17.8%, net earnings $90.6M, operating cash flow $84.1M. The chart follows the revenue to costs, profit and cash.
Questions
Is Gentex being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Gentex?
A leveraged buyout at today's price plus 30% ($25.83 a share) would return about 12% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Gentex 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, Gentex would cost about $26.33 a share, $5.4B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.