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Filing Flows › Lowe's Companies (LOW) › Takeover & LBO

Is Lowe's Companies (LOW) a takeover target?

A leveraged buyout at today's price plus 30% ($295.41 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 $178.09 a share (−22% against today's $227.24). At $202.2B 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. Historically 2.2% of companies with its figures were bought within a year (0.44× the average).

Share price$227.24
Offer at +30%$295.41
Buyer's IRR5%
Most for 20%$178.09
EV / EBITDA12.9×
Buyout debt5.5× EBITDA

The buyout, step by step

EntryAmountHow
Offer price a share$295.41today's $227.24 plus 30%
× shares560.0 million
= Equity value$165.4B
+ Debt refinanced$40.2B
− Cash$3.4B
= Enterprise value$202.2B15.9× EBITDA of $12.8B
Fees$4.0B2% of the price
New debt$70.2B5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA
Buyer's own money$136.1B66% of the cost

5 years under the buyer

Lowe's Companies: buyout debt left, year by yearLowe's Companies: buyout debt left, year by year$70.2BEntry$66.3BYear 1$61.6BYear 2$56.0BYear 3$49.6BYear 4$42.3BYear 5
Free cash flow after interest and tax repays the debt; a shortfall is borrowed.
YearRevenueEBITDAInterestFree cash flowDebt left
Year 1$97.7B$13.8B$5.4B$3.9B$66.3B
Year 2$104.3B$14.7B$5.1B$4.7B$61.6B
Year 3$110.0B$15.5B$4.7B$5.6B$56.0B
Year 4$114.7B$16.2B$4.3B$6.4B$49.6B
Year 5$118.1B$16.7B$3.8B$7.2B$42.3B

The exit and the buyer's return

ExitAmount
Exit multiple12.9× EBITDAtoday's trading multiple, before any premium
Enterprise value at exit$214.3B
− Debt left$42.3B
= Buyer's equity$171.9B
Money multiple1.26×on $136.1B put in
Buyer's yearly return (IRR)4.8%

Price against return

What the buyer makes at other premiums over today's $227.24; the IRR reaches 20% at $178.09 a share.

PremiumPrice a shareBuyer's IRR
10%$249.969.3%
20%$272.696.9%
30%$295.414.8%
40%$318.142.9%
50%$340.861.2%

The figures used

FigureAmount
Revenue, last 12 months$90.4B
EBITDA, last 12 months$12.8B14.1% of revenue
Depreciation and amortization$2.5B
Capital spending$2.3B
Debt$40.2B
Cash$3.4B
Share price$227.24on Nov 5, 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 24% 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, Lowe's Companies would cost about $301.09 a share, $168.6B for all its shares.

Premium%Price a shareAll shares
Low end (a quarter of deals paid less)20%$272.69$152.7B
Median32.5%$301.09$168.6B
High end (a quarter paid more)51.8%$344.95$193.2B

The odds, from history

Historically 2.2% of companies with its figures were bought within a year (0.44× 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.

Lowe's Companies' latest quarter

Lowe's Companies, Q2 FY27: revenue $26.0B (+8% year over year), operating margin 13.7%, net earnings $2.4B, operating cash flow $3.7B. The chart follows the revenue to costs, profit and cash.

Questions

Is Lowe's Companies being acquired?

No headline, 8-K or 13D about a sale is on file in the last year.

Could private equity buy Lowe's Companies?

A leveraged buyout at today's price plus 30% ($295.41 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 $178.09 a share (−22% against today's $227.24). At $202.2B 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 Lowe's Companies 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, Lowe's Companies would cost about $301.09 a share, $168.6B for all its shares.

Open the interactive view →

Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.