Filing Flows › Kforce (KFRC) › Takeover & LBO
Is Kforce (KFRC) a takeover target?
A leveraged buyout at today's price plus 30% ($74.63 a share) would return a loss of about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $39.94 a share (−30% against today's $57.41). Historically 3.0% of companies with its figures were bought within a year (0.59× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $74.63 | today's $57.41 plus 30% |
| × shares | 17.2 million | |
| = Equity value | $1.3B | |
| + Debt refinanced | $0 | |
| − Cash | $250K | |
| = Enterprise value | $1.3B | 19.2× EBITDA of $66.9M |
| Fees | $25.7M | 2% of the price |
| New debt | $368M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $943M | 72% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.4B | $68.3M | $28.2M | $12.6M | $355M |
| Year 2 | $1.4B | $70.0M | $27.2M | $13.7M | $342M |
| Year 3 | $1.5B | $71.8M | $26.1M | $15.0M | $327M |
| Year 4 | $1.5B | $73.7M | $25.0M | $16.4M | $310M |
| Year 5 | $1.6B | $76.0M | $23.7M | $18.0M | $292M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.8× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.1B | |
| − Debt left | $292M | |
| = Buyer's equity | $830M | |
| Money multiple | 0.88× | on $943M put in |
| Buyer's yearly return (IRR) | −2.5% |
Price against return
What the buyer makes at other premiums over today's $57.41; the IRR reaches 20% at $39.94 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $63.15 | 2.3% |
| 20% | $68.89 | −0.3% |
| 30% | $74.63 | −2.5% |
| 40% | $80.37 | −4.5% |
| 50% | $86.11 | −6.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.4B | |
| EBITDA, last 12 months | $66.9M | 4.9% of revenue |
| Depreciation and amortization | $5.1M | |
| Capital spending | $13.9M | |
| Debt | $0 | |
| Cash | $250K | |
| Share price | $57.41 | 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 2.1% 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 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, Kforce would cost about $80.37 a share, $1.4B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $65.85 | $1.1B |
| Median | 40% | $80.37 | $1.4B |
| High end (a quarter paid more) | 60.2% | $91.97 | $1.6B |
The odds, from history
Historically 3.0% of companies with its figures were bought within a year (0.59× 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.
Kforce's latest quarter
Kforce, Q3 2026: revenue $358M (+8% year over year), operating margin 6.3%, net earnings $15.4M, operating cash flow $9.5M. The chart follows the revenue to costs, profit and cash.
Questions
Is Kforce being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Kforce?
A leveraged buyout at today's price plus 30% ($74.63 a share) would return a loss of about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $39.94 a share (−30% against today's $57.41).
What would a takeover of Kforce 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, Kforce would cost about $80.37 a share, $1.4B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.