Filing Flows › L3Harris Technologies (LHX) › Takeover & LBO
Is L3Harris Technologies (LHX) a takeover target?
A leveraged buyout at today's price plus 30% ($335.54 a share) would return about 5% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $227.07 a share (−12% against today's $258.11). At $71.0B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $335.54 | today's $258.11 plus 30% |
| × shares | 186.9 million | |
| = Equity value | $62.7B | |
| + Debt refinanced | $11.3B | |
| − Cash | $3.0B | |
| = Enterprise value | $71.0B | 13.3× EBITDA of $5.3B |
| Fees | $1.4B | 2% of the price |
| New debt | $29.4B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $43.0B | 59% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $41.7B | $5.6B | $2.3B | $2.3B | $27.1B |
| Year 2 | $43.6B | $5.9B | $2.1B | $2.7B | $24.4B |
| Year 3 | $45.5B | $6.2B | $1.9B | $3.1B | $21.2B |
| Year 4 | $47.1B | $6.4B | $1.6B | $3.5B | $17.7B |
| Year 5 | $48.5B | $6.6B | $1.4B | $3.9B | $13.8B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 10.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $69.4B | |
| − Debt left | $13.8B | |
| = Buyer's equity | $55.6B | |
| Money multiple | 1.29× | on $43.0B put in |
| Buyer's yearly return (IRR) | 5.3% |
Price against return
What the buyer makes at other premiums over today's $258.11; the IRR reaches 20% at $227.07 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $283.92 | 10.9% |
| 20% | $309.73 | 7.9% |
| 30% | $335.54 | 5.3% |
| 40% | $361.35 | 3.0% |
| 50% | $387.17 | 1.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $39.5B | |
| EBITDA, last 12 months | $5.3B | 13.5% of revenue |
| Depreciation and amortization | $1.1B | |
| Capital spending | $544M | |
| Debt | $11.3B | |
| Cash | $3.0B | |
| Share price | $258.11 | 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 5.3% 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 12% 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, L3Harris Technologies would cost about $361.35 a share, $67.5B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $296.05 | $55.3B |
| Median | 40% | $361.35 | $67.5B |
| High end (a quarter paid more) | 60.2% | $413.49 | $77.3B |
L3Harris Technologies' latest quarter
L3Harris Technologies, Q3 2026: revenue $6.1B (+7% year over year), operating margin 13.0%, net earnings $632M, operating cash flow $1.4B. The chart follows the revenue to costs, profit and cash.
Questions
Is L3Harris Technologies being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy L3Harris Technologies?
A leveraged buyout at today's price plus 30% ($335.54 a share) would return about 5% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $227.07 a share (−12% against today's $258.11). At $71.0B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect.
What would a takeover of L3Harris Technologies 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, L3Harris Technologies would cost about $361.35 a share, $67.5B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.