Filing Flows › IES Holdings (IESC) › Takeover & LBO
Is IES Holdings (IESC) a takeover target?
A leveraged buyout at today's price plus 30% ($205.09 a share) would return about 10% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 3.4% of companies with its figures were bought within a year (0.68× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $205.09 | today's $157.76 plus 30% |
| × shares | 20.2 million | |
| = Equity value | $4.1B | |
| + Debt refinanced | $35.0M | |
| − Cash | $388M | |
| + Other claims | $4.6M | preferred stock, minority interests |
| = Enterprise value | $3.8B | 6.9× EBITDA of $551M |
| Fees | $75.9M | 2% of the price |
| New debt | $2.5B | 4.5× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $1.4B | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $4.3B | $595M | $189M | $137M | $2.3B |
| Year 2 | $4.6B | $635M | $178M | $169M | $2.2B |
| Year 3 | $4.8B | $670M | $165M | $201M | $2.0B |
| Year 4 | $5.1B | $698M | $150M | $232M | $1.7B |
| Year 5 | $5.2B | $719M | $132M | $262M | $1.5B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 5.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $3.7B | |
| − Debt left | $1.5B | |
| = Buyer's equity | $2.2B | |
| Money multiple | 1.60× | on $1.4B put in |
| Buyer's yearly return (IRR) | 9.8% |
Price against return
What the buyer makes at other premiums over today's $157.76.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $173.54 | 19.0% |
| 20% | $189.31 | 14.4% |
| 30% | $205.09 | 9.8% |
| 40% | $220.86 | 5.3% |
| 50% | $236.64 | 0.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $4.0B | |
| EBITDA, last 12 months | $551M | 13.8% of revenue |
| Depreciation and amortization | $58.0M | |
| Capital spending | $143M | |
| Debt | $35.0M | |
| Cash | $388M | |
| Share price | $157.76 | 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 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 24% 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, IES Holdings would cost about $220.86 a share, $4.5B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $180.95 | $3.7B |
| Median | 40% | $220.86 | $4.5B |
| High end (a quarter paid more) | 60.2% | $252.73 | $5.1B |
The odds, from history
Historically 3.4% of companies with its figures were bought within a year (0.68× 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.
IES Holdings' latest quarter
IES Holdings, Q3 FY26: revenue $1.2B (+40% year over year), operating margin 14.4%, net earnings $153M, operating cash flow $108M. The chart follows the revenue to costs, profit and cash.
Questions
Is IES Holdings being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy IES Holdings?
A leveraged buyout at today's price plus 30% ($205.09 a share) would return about 10% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of IES 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, IES Holdings would cost about $220.86 a share, $4.5B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.