Filing Flows › i3 Verticals (IIIV) › Takeover & LBO
Is i3 Verticals (IIIV) a takeover target?
A leveraged buyout at today's price plus 30% ($20.77 a share) would return about 5% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $12.64 a share (−21% against today's $15.98). Historically 3.7% of companies with its figures were bought within a year (0.74× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $20.77 | today's $15.98 plus 30% |
| × shares | 19.5 million | |
| = Equity value | $406M | |
| + Debt refinanced | $114M | |
| − Cash | $2.6M | |
| = Enterprise value | $518M | 14.8× EBITDA of $34.9M |
| Fees | $10.4M | 2% of the price |
| New debt | $192M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $336M | 64% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $227M | $36.3M | $14.7M | $18.2M | $174M |
| Year 2 | $236M | $37.7M | $13.3M | $20.9M | $153M |
| Year 3 | $244M | $39.1M | $11.7M | $23.8M | $129M |
| Year 4 | $252M | $40.3M | $9.9M | $26.8M | $102M |
| Year 5 | $260M | $41.5M | $7.8M | $30.0M | $72.2M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 12.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $505M | |
| − Debt left | $72.2M | |
| = Buyer's equity | $432M | |
| Money multiple | 1.29× | on $336M put in |
| Buyer's yearly return (IRR) | 5.2% |
Price against return
What the buyer makes at other premiums over today's $15.98; the IRR reaches 20% at $12.64 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $17.58 | 9.7% |
| 20% | $19.18 | 7.3% |
| 30% | $20.77 | 5.2% |
| 40% | $22.37 | 3.3% |
| 50% | $23.97 | 1.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $218M | |
| EBITDA, last 12 months | $34.9M | 16.0% of revenue |
| Depreciation and amortization | $29.0M | |
| Capital spending | $2.5M | |
| Debt | $114M | |
| Cash | $2.6M | |
| Share price | $15.98 | on Oct 9, 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 4.1% 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 30% 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 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, i3 Verticals would cost about $20.77 a share, $406M for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $17.90 | $350M |
| Median | 30% | $20.77 | $406M |
| High end (a quarter paid more) | 31% | $20.93 | $409M |
The odds, from history
Historically 3.7% of companies with its figures were bought within a year (0.74× 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.
i3 Verticals' latest quarter
i3 Verticals, Q3 FY26: revenue $53.1M (+2% year over year), operating margin -1.7%, net earnings $5.7M, operating cash flow $14.3M. The chart follows the revenue to costs, profit and cash.
Questions
Is i3 Verticals being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy i3 Verticals?
A leveraged buyout at today's price plus 30% ($20.77 a share) would return about 5% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $12.64 a share (−21% against today's $15.98).
What would a takeover of i3 Verticals cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, i3 Verticals would cost about $20.77 a share, $406M for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.