Filing Flows › Microchip Technology (MCHP) › Takeover & LBO
Is Microchip Technology (MCHP) a takeover target?
A leveraged buyout at today's price plus 30% ($76.00 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $41.29 a share (−29% against today's $58.46). Historically 3.4% of companies with its figures were bought within a year (0.67× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $76.00 | today's $58.46 plus 30% |
| × shares | 550.6 million | |
| = Equity value | $41.8B | |
| + Debt refinanced | $5.5B | |
| − Cash | $457M | |
| = Enterprise value | $46.9B | 25.7× EBITDA of $1.8B |
| Fees | $938M | 2% of the price |
| New debt | $10.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $37.8B | 79% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $6.1B | $2.0B | $769M | $1.0B | $9.0B |
| Year 2 | $6.5B | $2.1B | $692M | $1.2B | $7.8B |
| Year 3 | $6.8B | $2.2B | $599M | $1.4B | $6.4B |
| Year 4 | $7.1B | $2.3B | $493M | $1.6B | $4.9B |
| Year 5 | $7.3B | $2.4B | $373M | $1.7B | $3.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 20.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $48.6B | |
| − Debt left | $3.1B | |
| = Buyer's equity | $45.5B | |
| Money multiple | 1.20× | on $37.8B put in |
| Buyer's yearly return (IRR) | 3.8% |
Price against return
What the buyer makes at other premiums over today's $58.46; the IRR reaches 20% at $41.29 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $64.30 | 7.8% |
| 20% | $70.15 | 5.7% |
| 30% | $76.00 | 3.8% |
| 40% | $81.84 | 2.1% |
| 50% | $87.69 | 0.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $5.6B | |
| EBITDA, last 12 months | $1.8B | 32.6% of revenue |
| Depreciation and amortization | $658M | |
| Capital spending | $73.7M | |
| Debt | $5.5B | |
| Cash | $457M | |
| Share price | $58.46 | 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 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 13% 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 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Microchip Technology would cost about $76.00 a share, $41.8B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $65.47 | $36.0B |
| Median | 30% | $76.00 | $41.8B |
| High end (a quarter paid more) | 31% | $76.58 | $42.2B |
The odds, from history
Historically 3.4% of companies with its figures were bought within a year (0.67× the average). Its figures put it in decile 3 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.
Microchip Technology's latest quarter
Microchip Technology, Q2 FY27: revenue $1.6B (+42% year over year), operating margin 28.6%, net earnings $401M, operating cash flow $419M. The chart follows the revenue to costs, profit and cash.
Questions
Is Microchip Technology being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Microchip Technology?
A leveraged buyout at today's price plus 30% ($76.00 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $41.29 a share (−29% against today's $58.46).
What would a takeover of Microchip Technology cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Microchip Technology would cost about $76.00 a share, $41.8B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.