Filing Flows › Korn Ferry (KFY) › Takeover & LBO
Is Korn Ferry (KFY) a takeover target?
A leveraged buyout at today's price plus 30% ($99.52 a share) would return about 6% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 3.3% of companies with its figures were bought within a year (0.67× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $99.52 | today's $76.55 plus 30% |
| × shares | 51.3 million | |
| = Equity value | $5.1B | |
| + Debt refinanced | $399M | |
| − Cash | $816M | |
| + Other claims | $6.9M | preferred stock, minority interests |
| = Enterprise value | $4.7B | 9.7× EBITDA of $483M |
| Fees | $94.0M | 2% of the price |
| New debt | $2.7B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $2.1B | 45% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $3.2B | $517M | $203M | $144M | $2.5B |
| Year 2 | $3.4B | $547M | $192M | $173M | $2.3B |
| Year 3 | $3.6B | $574M | $179M | $201M | $2.1B |
| Year 4 | $3.7B | $597M | $164M | $229M | $1.9B |
| Year 5 | $3.8B | $615M | $146M | $255M | $1.7B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 7.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $4.5B | |
| − Debt left | $1.7B | |
| = Buyer's equity | $2.8B | |
| Money multiple | 1.32× | on $2.1B put in |
| Buyer's yearly return (IRR) | 5.8% |
Price against return
What the buyer makes at other premiums over today's $76.55.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $84.20 | 15.5% |
| 20% | $91.86 | 10.3% |
| 30% | $99.52 | 5.8% |
| 40% | $107.17 | 2.2% |
| 50% | $114.82 | −0.8% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $3.0B | |
| EBITDA, last 12 months | $483M | 16.2% of revenue |
| Depreciation and amortization | $98.4M | |
| Capital spending | $85.2M | |
| Debt | $399M | |
| Cash | $816M | |
| Share price | $76.55 | 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 6.9% 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 27% 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, Korn Ferry would cost about $107.17 a share, $5.5B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $87.80 | $4.5B |
| Median | 40% | $107.17 | $5.5B |
| High end (a quarter paid more) | 60.2% | $122.63 | $6.3B |
The odds, from history
Historically 3.3% of companies with its figures were bought within a year (0.67× 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.
Korn Ferry's latest quarter
Korn Ferry, Q1 FY27: revenue $765M (+7% year over year), operating margin 12.2%, net earnings $69.0M, operating cash flow −$248M. The chart follows the revenue to costs, profit and cash.
Questions
Is Korn Ferry being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Korn Ferry?
A leveraged buyout at today's price plus 30% ($99.52 a share) would return about 6% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Korn Ferry 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, Korn Ferry would cost about $107.17 a share, $5.5B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.