Filing Flows › Legence (LGN) › Takeover & LBO
Is Legence (LGN) a takeover target?
A leveraged buyout at today's price plus 30% ($36.78 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $14.37 a share (−49% against today's $28.29). Historically 4.3% of companies with its figures were bought within a year (0.86× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $36.78 | today's $28.29 plus 30% |
| × shares | 76.0 million | |
| = Equity value | $2.8B | |
| + Debt refinanced | $1.0B | |
| − Cash | $292M | |
| + Other claims | $377M | preferred stock, minority interests |
| = Enterprise value | $3.9B | 25.6× EBITDA of $153M |
| Fees | $78.5M | 2% of the price |
| New debt | $842M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.2B | 79% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $4.0B | $165M | $64.4M | $122K | $842M |
| Year 2 | $4.3B | $177M | $64.4M | $9.2M | $833M |
| Year 3 | $4.6B | $186M | $63.7M | $19.0M | $814M |
| Year 4 | $4.7B | $194M | $62.3M | $29.3M | $785M |
| Year 5 | $4.9B | $200M | $60.0M | $40.0M | $745M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 21.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $4.3B | |
| − Debt left | $745M | |
| = Buyer's equity | $3.5B | |
| Money multiple | 1.12× | on $3.2B put in |
| Buyer's yearly return (IRR) | 2.3% |
Price against return
What the buyer makes at other premiums over today's $28.29; the IRR reaches 20% at $14.37 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $31.12 | 5.4% |
| 20% | $33.95 | 3.8% |
| 30% | $36.78 | 2.3% |
| 40% | $39.61 | 0.9% |
| 50% | $42.44 | −0.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $3.7B | |
| EBITDA, last 12 months | $153M | 4.1% of revenue |
| Depreciation and amortization | $124M | |
| Capital spending | $65.6M | |
| Debt | $1.0B | |
| Cash | $292M | |
| Share price | $28.29 | on Nov 6, 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 21% 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, Legence would cost about $39.61 a share, $3.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $32.45 | $2.5B |
| Median | 40% | $39.61 | $3.0B |
| High end (a quarter paid more) | 60.2% | $45.32 | $3.4B |
The odds, from history
Historically 4.3% of companies with its figures were bought within a year (0.86× the average). Its figures put it in decile 5 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.
Legence's latest quarter
Legence, Q2 2026: revenue $1.3B (+111% year over year), operating margin -0.5%, net loss $34.6M, operating cash flow $74.4M. The chart follows the revenue to costs, profit and cash.
Questions
Is Legence being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Legence?
A leveraged buyout at today's price plus 30% ($36.78 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $14.37 a share (−49% against today's $28.29).
What would a takeover of Legence 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, Legence would cost about $39.61 a share, $3.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.