Filing Flows › Pediatrix Medical Group (MD) › Takeover & LBO
Is Pediatrix Medical Group (MD) a takeover target?
A leveraged buyout at today's price plus 30% ($38.77 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $24.42 a share (−18% against today's $29.82).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $38.77 | today's $29.82 plus 30% |
| × shares | 79.7 million | |
| = Equity value | $3.1B | |
| + Debt refinanced | $578M | |
| − Cash | $426M | |
| = Enterprise value | $3.2B | 13.7× EBITDA of $236M |
| Fees | $64.9M | 2% of the price |
| New debt | $1.3B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $2.0B | 61% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.0B | $241M | $99.4M | $89.3M | $1.2B |
| Year 2 | $2.0B | $246M | $92.6M | $97.4M | $1.1B |
| Year 3 | $2.1B | $252M | $85.2M | $106M | $1.0B |
| Year 4 | $2.1B | $259M | $77.0M | $116M | $890M |
| Year 5 | $2.2B | $267M | $68.1M | $128M | $763M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 10.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $2.9B | |
| − Debt left | $763M | |
| = Buyer's equity | $2.1B | |
| Money multiple | 1.04× | on $2.0B put in |
| Buyer's yearly return (IRR) | 0.8% |
Price against return
What the buyer makes at other premiums over today's $29.82; the IRR reaches 20% at $24.42 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $32.80 | 6.6% |
| 20% | $35.78 | 3.5% |
| 30% | $38.77 | 0.8% |
| 40% | $41.75 | −1.4% |
| 50% | $44.73 | −3.4% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.0B | |
| EBITDA, last 12 months | $236M | 12.1% of revenue |
| Depreciation and amortization | $23.8M | |
| Capital spending | $17.3M | |
| Debt | $578M | |
| Cash | $426M | |
| Share price | $29.82 | 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 1.9% 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 26% 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 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Pediatrix Medical Group would cost about $40.26 a share, $3.2B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $36.38 | $2.9B |
| Median | 35% | $40.26 | $3.2B |
| High end (a quarter paid more) | 45% | $43.24 | $3.4B |
Pediatrix Medical Group's latest quarter
Pediatrix Medical Group, Q3 2026: revenue $501M (+2% year over year), operating margin 13.0%, net earnings $47.0M, operating cash flow $117M. The chart follows the revenue to costs, profit and cash.
Questions
Is Pediatrix Medical Group being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Pediatrix Medical Group?
A leveraged buyout at today's price plus 30% ($38.77 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $24.42 a share (−18% against today's $29.82).
What would a takeover of Pediatrix Medical Group cost?
Takeovers in its sector paid a median premium of 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Pediatrix Medical Group would cost about $40.26 a share, $3.2B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.