Filing Flows › Liberty Latin America (LILA) › Takeover & LBO
Is Liberty Latin America (LILA) a takeover target?
A leveraged buyout at today's price plus 30% ($10.97 a share) would return about 13% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $3.72 a share (−56% against today's $8.44).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $10.97 | today's $8.44 plus 30% |
| × shares | 194.7 million | |
| = Equity value | $2.1B | |
| + Debt refinanced | $8.4B | |
| − Cash | $546M | |
| + Other claims | $474M | preferred stock, minority interests |
| = Enterprise value | $10.5B | 6.7× EBITDA of $1.6B |
| Fees | $210M | 2% of the price |
| New debt | $6.8B | 4.4× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $3.9B | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $4.5B | $1.6B | $522M | $507M | $6.3B |
| Year 2 | $4.6B | $1.6B | $483M | $545M | $5.8B |
| Year 3 | $4.7B | $1.6B | $441M | $589M | $5.2B |
| Year 4 | $4.8B | $1.7B | $396M | $640M | $4.5B |
| Year 5 | $4.9B | $1.7B | $347M | $699M | $3.8B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 6.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $11.0B | |
| − Debt left | $3.8B | |
| = Buyer's equity | $7.2B | |
| Money multiple | 1.85× | on $3.9B put in |
| Buyer's yearly return (IRR) | 13.1% |
Price against return
What the buyer makes at other premiums over today's $8.44; the IRR reaches 20% at $3.72 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $9.28 | 14.6% |
| 20% | $10.13 | 13.8% |
| 30% | $10.97 | 13.1% |
| 40% | $11.82 | 12.3% |
| 50% | $12.66 | 11.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $4.5B | |
| EBITDA, last 12 months | $1.6B | 35.0% of revenue |
| Depreciation and amortization | $928M | |
| Capital spending | $503M | |
| Debt | $8.4B | |
| Cash | $546M | |
| Share price | $8.44 | 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 0.9% 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 30% 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, Liberty Latin America would cost about $11.18 a share, $2.2B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $10.13 | $2.0B |
| Median | 32.5% | $11.18 | $2.2B |
| High end (a quarter paid more) | 51.8% | $12.81 | $2.5B |
Liberty Latin America's latest quarter
Liberty Latin America, Q3 2026: revenue $1.1B (+0.4% year over year), operating margin 16.2%, net loss $55.8M, operating cash flow $185M. The chart follows the revenue to costs, profit and cash.
Questions
Is Liberty Latin America being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Liberty Latin America?
A leveraged buyout at today's price plus 30% ($10.97 a share) would return about 13% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $3.72 a share (−56% against today's $8.44).
What would a takeover of Liberty Latin America 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, Liberty Latin America would cost about $11.18 a share, $2.2B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.