Filing Flows › Halliburton (HAL) › Takeover & LBO
Is Halliburton (HAL) a takeover target?
A leveraged buyout at today's price plus 30% ($41.50 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $27.25 a share (−15% against today's $31.92).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $41.50 | today's $31.92 plus 30% |
| × shares | 832.0 million | |
| = Equity value | $34.5B | |
| + Debt refinanced | $7.1B | |
| − Cash | $1.8B | |
| + Other claims | $43.0M | preferred stock, minority interests |
| = Enterprise value | $39.8B | 9.9× EBITDA of $4.0B |
| Fees | $796M | 2% of the price |
| New debt | $22.0B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $18.6B | 46% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $22.8B | $4.1B | $1.7B | $1.1B | $20.9B |
| Year 2 | $23.3B | $4.1B | $1.6B | $1.2B | $19.7B |
| Year 3 | $23.8B | $4.2B | $1.5B | $1.4B | $18.3B |
| Year 4 | $24.4B | $4.3B | $1.4B | $1.5B | $16.8B |
| Year 5 | $25.1B | $4.5B | $1.3B | $1.7B | $15.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 7.9× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $35.6B | |
| − Debt left | $15.1B | |
| = Buyer's equity | $20.5B | |
| Money multiple | 1.10× | on $18.6B put in |
| Buyer's yearly return (IRR) | 2.0% |
Price against return
What the buyer makes at other premiums over today's $31.92; the IRR reaches 20% at $27.25 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $35.11 | 9.2% |
| 20% | $38.30 | 5.2% |
| 30% | $41.50 | 2.0% |
| 40% | $44.69 | −0.8% |
| 50% | $47.88 | −3.1% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $22.5B | |
| EBITDA, last 12 months | $4.0B | 17.8% of revenue |
| Depreciation and amortization | $1.2B | |
| Capital spending | $1.0B | |
| Debt | $7.1B | |
| Cash | $1.8B | |
| Share price | $31.92 | 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 1.5% 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, Halliburton would cost about $42.29 a share, $35.2B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $38.30 | $31.9B |
| Median | 32.5% | $42.29 | $35.2B |
| High end (a quarter paid more) | 51.8% | $48.45 | $40.3B |
Halliburton's latest quarter
Halliburton, Q3 2026: revenue $5.7B (+2% year over year), operating margin 10.9%, net earnings $419M, operating cash flow $368M. The chart follows the revenue to costs, profit and cash.
Questions
Is Halliburton being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Halliburton?
A leveraged buyout at today's price plus 30% ($41.50 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $27.25 a share (−15% against today's $31.92).
What would a takeover of Halliburton 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, Halliburton would cost about $42.29 a share, $35.2B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.