Filing Flows › La-Z-Boy (LZB) › Takeover & LBO
Is La-Z-Boy (LZB) a takeover target?
A leveraged buyout at today's price plus 30% ($39.57 a share) would return a loss of about 19% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 4.6% of companies with its figures were bought within a year (0.91× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $39.57 | today's $30.44 plus 30% |
| × shares | 40.0 million | |
| = Equity value | $1.6B | |
| + Debt refinanced | $0 | |
| − Cash | $267M | |
| + Other claims | $12.5M | preferred stock, minority interests |
| = Enterprise value | $1.3B | 8.6× EBITDA of $154M |
| Fees | $26.6M | 2% of the price |
| New debt | $847M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $508M | 37% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.1B | $154M | $64.8M | −$2.5M | $849M |
| Year 2 | $2.1B | $156M | $65.0M | −$3.8M | $853M |
| Year 3 | $2.2B | $158M | $65.2M | −$4.7M | $858M |
| Year 4 | $2.2B | $162M | $65.6M | −$5.5M | $863M |
| Year 5 | $2.3B | $167M | $66.0M | −$6.0M | $869M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 6.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.0B | |
| − Debt left | $869M | |
| = Buyer's equity | $173M | |
| Money multiple | 0.34× | on $508M put in |
| Buyer's yearly return (IRR) | −19.4% |
Price against return
What the buyer makes at other premiums over today's $30.44.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $33.48 | −2.2% |
| 20% | $36.53 | −10.6% |
| 30% | $39.57 | −19.4% |
| 40% | $42.62 | −22.8% |
| 50% | $45.66 | −25.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.1B | |
| EBITDA, last 12 months | $154M | 7.3% of revenue |
| Depreciation and amortization | $48.8M | |
| Capital spending | $81.1M | |
| Debt | $0 | |
| Cash | $267M | |
| Share price | $30.44 | 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 0.2% 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 25% 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, La-Z-Boy would cost about $40.33 a share, $1.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $36.53 | $1.5B |
| Median | 32.5% | $40.33 | $1.6B |
| High end (a quarter paid more) | 51.8% | $46.21 | $1.8B |
The odds, from history
Historically 4.6% of companies with its figures were bought within a year (0.91× 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.
La-Z-Boy's latest quarter
La-Z-Boy, Q1 FY27: revenue $476M (-3% year over year), operating margin -0.4%, net loss $2.0M, operating cash flow $15.6M. The chart follows the revenue to costs, profit and cash.
Questions
Is La-Z-Boy being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy La-Z-Boy?
A leveraged buyout at today's price plus 30% ($39.57 a share) would return a loss of about 19% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of La-Z-Boy 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, La-Z-Boy would cost about $40.33 a share, $1.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.