Filing Flows › Labcorp Holdings (LH) › Takeover & LBO
Is Labcorp Holdings (LH) a takeover target?
A leveraged buyout at today's price plus 30% ($472.29 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 $251.92 a share (−31% against today's $363.30). Historically 1.9% of companies with its figures were bought within a year (0.37× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $472.29 | today's $363.30 plus 30% |
| × shares | 81.6 million | |
| = Equity value | $38.5B | |
| + Debt refinanced | $5.9B | |
| − Cash | $262M | |
| = Enterprise value | $44.1B | 20.0× EBITDA of $2.2B |
| Fees | $883M | 2% of the price |
| New debt | $12.2B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $32.9B | 73% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $15.5B | $2.3B | $930M | $627M | $11.5B |
| Year 2 | $16.3B | $2.5B | $882M | $747M | $10.8B |
| Year 3 | $17.0B | $2.6B | $825M | $869M | $9.9B |
| Year 4 | $17.7B | $2.7B | $758M | $991M | $8.9B |
| Year 5 | $18.2B | $2.8B | $683M | $1.1B | $7.8B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 15.9× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $43.9B | |
| − Debt left | $7.8B | |
| = Buyer's equity | $36.1B | |
| Money multiple | 1.10× | on $32.9B put in |
| Buyer's yearly return (IRR) | 1.9% |
Price against return
What the buyer makes at other premiums over today's $363.30; the IRR reaches 20% at $251.92 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $399.63 | 6.1% |
| 20% | $435.96 | 3.9% |
| 30% | $472.29 | 1.9% |
| 40% | $508.62 | 0.1% |
| 50% | $544.95 | −1.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $14.6B | |
| EBITDA, last 12 months | $2.2B | 15.1% of revenue |
| Depreciation and amortization | $708M | |
| Capital spending | $528M | |
| Debt | $5.9B | |
| Cash | $262M | |
| Share price | $363.30 | 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 6.0% 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 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Labcorp Holdings would cost about $490.46 a share, $40.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $443.23 | $36.2B |
| Median | 35% | $490.46 | $40.0B |
| High end (a quarter paid more) | 45% | $526.78 | $43.0B |
The odds, from history
Historically 1.9% of companies with its figures were bought within a year (0.37× the average). Its figures put it in decile 1 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.
Labcorp Holdings' latest quarter
Labcorp Holdings, Q3 2026: revenue $3.8B (+7% year over year), operating margin 10.6%, net earnings $263M, operating cash flow $564M. The chart follows the revenue to costs, profit and cash.
Questions
Is Labcorp Holdings being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Labcorp Holdings?
A leveraged buyout at today's price plus 30% ($472.29 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 $251.92 a share (−31% against today's $363.30).
What would a takeover of Labcorp Holdings cost?
Takeovers in its sector paid a median premium of 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Labcorp Holdings would cost about $490.46 a share, $40.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.