Filing Flows › Legacy Housing (LEGH) › Takeover & LBO
Is Legacy Housing (LEGH) a takeover target?
A leveraged buyout at today's price plus 30% ($36.15 a share) would return about 7% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 5.2% of companies with its figures were bought within a year (1.03× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $36.15 | today's $27.81 plus 30% |
| × shares | 23.8 million | |
| = Equity value | $860M | |
| + Debt refinanced | $0 | |
| − Cash | $29.0M | |
| = Enterprise value | $831M | 11.1× EBITDA of $74.9M |
| Fees | $16.6M | 2% of the price |
| New debt | $412M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $435M | 51% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $225M | $80.9M | $31.5M | $27.2M | $385M |
| Year 2 | $241M | $86.4M | $29.4M | $32.8M | $352M |
| Year 3 | $254M | $91.1M | $26.9M | $38.4M | $314M |
| Year 4 | $265M | $95.0M | $24.0M | $43.7M | $270M |
| Year 5 | $273M | $97.9M | $20.6M | $48.8M | $221M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 8.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $826M | |
| − Debt left | $221M | |
| = Buyer's equity | $605M | |
| Money multiple | 1.39× | on $435M put in |
| Buyer's yearly return (IRR) | 6.8% |
Price against return
What the buyer makes at other premiums over today's $27.81.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $30.59 | 15.0% |
| 20% | $33.37 | 10.5% |
| 30% | $36.15 | 6.8% |
| 40% | $38.93 | 3.8% |
| 50% | $41.71 | 1.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $209M | |
| EBITDA, last 12 months | $74.9M | 35.9% of revenue |
| Depreciation and amortization | $2.4M | |
| Capital spending | $12.0M | |
| Debt | $0 | |
| Cash | $29.0M | |
| Share price | $27.81 | 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 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 16% 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 on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Legacy Housing would cost about $36.85 a share, $876M for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $33.37 | $794M |
| Median | 32.5% | $36.85 | $876M |
| High end (a quarter paid more) | 51.8% | $42.22 | $1.0B |
The odds, from history
Historically 5.2% of companies with its figures were bought within a year (1.03× the average). Its figures put it in decile 6 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.
Legacy Housing's latest quarter
Legacy Housing, Q3 2026: revenue $69.7M (+72% year over year), operating margin 33.6%, net earnings $20.1M, operating cash flow $10.9M. The chart follows the revenue to costs, profit and cash.
Questions
Is Legacy Housing being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Legacy Housing?
A leveraged buyout at today's price plus 30% ($36.15 a share) would return about 7% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Legacy Housing cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Legacy Housing would cost about $36.85 a share, $876M for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.