Filing Flows › Mesa Laboratories (MLAB) › Takeover & LBO
Is Mesa Laboratories (MLAB) a takeover target?
A leveraged buyout at today's price plus 30% ($166.49 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $74.77 a share (−42% against today's $128.07). Historically 7.4% of companies with its figures were bought within a year (1.48× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $166.49 | today's $128.07 plus 30% |
| × shares | 5.8 million | |
| = Equity value | $958M | |
| + Debt refinanced | $66.1M | |
| − Cash | $30.7M | |
| = Enterprise value | $994M | 36.0× EBITDA of $27.6M |
| Fees | $19.9M | 2% of the price |
| New debt | $152M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $862M | 85% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $257M | $28.4M | $11.6M | $9.7M | $142M |
| Year 2 | $265M | $29.3M | $10.9M | $10.8M | $131M |
| Year 3 | $273M | $30.2M | $10.0M | $11.9M | $119M |
| Year 4 | $281M | $31.1M | $9.1M | $13.1M | $106M |
| Year 5 | $290M | $32.0M | $8.1M | $14.4M | $91.8M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 28.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $897M | |
| − Debt left | $91.8M | |
| = Buyer's equity | $805M | |
| Money multiple | 0.93× | on $862M put in |
| Buyer's yearly return (IRR) | −1.4% |
Price against return
What the buyer makes at other premiums over today's $128.07; the IRR reaches 20% at $74.77 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $140.88 | 2.5% |
| 20% | $153.68 | 0.5% |
| 30% | $166.49 | −1.4% |
| 40% | $179.30 | −3.0% |
| 50% | $192.10 | −4.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $250M | |
| EBITDA, last 12 months | $27.6M | 11.0% of revenue |
| Depreciation and amortization | $5.1M | |
| Capital spending | $2.8M | |
| Debt | $66.1M | |
| Cash | $30.7M | |
| Share price | $128.07 | on Oct 12, 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 3.0% 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 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 in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Mesa Laboratories would cost about $179.30 a share, $1.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $146.90 | $846M |
| Median | 40% | $179.30 | $1.0B |
| High end (a quarter paid more) | 60.2% | $205.17 | $1.2B |
The odds, from history
Historically 7.4% of companies with its figures were bought within a year (1.48× the average). Its figures put it in decile 9 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.
Mesa Laboratories' latest quarter
Mesa Laboratories, Q1 FY27: revenue $60.1M (+1% year over year), operating margin 11.7%, net earnings $2.8M, operating cash flow $14.7M. The chart follows the revenue to costs, profit and cash.
Questions
Is Mesa Laboratories being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Mesa Laboratories?
A leveraged buyout at today's price plus 30% ($166.49 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $74.77 a share (−42% against today's $128.07).
What would a takeover of Mesa Laboratories cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Mesa Laboratories would cost about $179.30 a share, $1.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.