Filing Flows › Laureate Education (LAUR) › Takeover & LBO
Is Laureate Education (LAUR) a takeover target?
A leveraged buyout at today's price plus 30% ($43.19 a share) would return about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $33.00 a share (−1% against today's $33.22). Historically 3.8% of companies with its figures were bought within a year (0.76× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $43.19 | today's $33.22 plus 30% |
| × shares | 138.0 million | |
| = Equity value | $6.0B | |
| + Debt refinanced | $203M | |
| − Cash | $190M | |
| = Enterprise value | $6.0B | 10.5× EBITDA of $569M |
| Fees | $119M | 2% of the price |
| New debt | $3.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.0B | 49% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.1B | $615M | $239M | $155M | $3.0B |
| Year 2 | $2.2B | $656M | $228M | $190M | $2.8B |
| Year 3 | $2.3B | $692M | $213M | $224M | $2.6B |
| Year 4 | $2.4B | $721M | $196M | $257M | $2.3B |
| Year 5 | $2.5B | $743M | $176M | $288M | $2.0B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 8.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $6.0B | |
| − Debt left | $2.0B | |
| = Buyer's equity | $4.0B | |
| Money multiple | 1.35× | on $3.0B put in |
| Buyer's yearly return (IRR) | 6.1% |
Price against return
What the buyer makes at other premiums over today's $33.22; the IRR reaches 20% at $33.00 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $36.54 | 14.5% |
| 20% | $39.86 | 9.8% |
| 30% | $43.19 | 6.1% |
| 40% | $46.51 | 3.1% |
| 50% | $49.83 | 0.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.9B | |
| EBITDA, last 12 months | $569M | 29.7% of revenue |
| Depreciation and amortization | $74.5M | |
| Capital spending | $130M | |
| Debt | $203M | |
| Cash | $190M | |
| Share price | $33.22 | 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 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 22% 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, Laureate Education would cost about $46.51 a share, $6.4B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $38.10 | $5.3B |
| Median | 40% | $46.51 | $6.4B |
| High end (a quarter paid more) | 60.2% | $53.22 | $7.3B |
The odds, from history
Historically 3.8% of companies with its figures were bought within a year (0.76× the average). Its figures put it in decile 4 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.
Laureate Education's latest quarter
Laureate Education, Q3 2026: revenue $485M (+21% year over year), operating margin 24.6%, net earnings $101M, operating cash flow $152M. The chart follows the revenue to costs, profit and cash.
Questions
Is Laureate Education being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Laureate Education?
A leveraged buyout at today's price plus 30% ($43.19 a share) would return about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $33.00 a share (−1% against today's $33.22).
What would a takeover of Laureate Education 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, Laureate Education would cost about $46.51 a share, $6.4B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.