Filing Flows › Millerknoll (MLKN) › Takeover & LBO
Is Millerknoll (MLKN) a takeover target?
A leveraged buyout at today's price plus 30% ($27.94 a share) would return about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $21.07 a share (−2% against today's $21.49). Historically 3.5% of companies with its figures were bought within a year (0.69× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $27.94 | today's $21.49 plus 30% |
| × shares | 70.0 million | |
| = Equity value | $2.0B | |
| + Debt refinanced | $200M | |
| − Cash | $179M | |
| = Enterprise value | $2.0B | 5.8× EBITDA of $344M |
| Fees | $39.6M | 2% of the price |
| New debt | $1.3B | 3.7× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $732M | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $3.9B | $348M | $98.4M | $95.4M | $1.2B |
| Year 2 | $3.9B | $354M | $91.1M | $102M | $1.1B |
| Year 3 | $4.0B | $361M | $83.3M | $110M | $978M |
| Year 4 | $4.1B | $371M | $74.9M | $119M | $860M |
| Year 5 | $4.2B | $382M | $65.8M | $129M | $730M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 4.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.7B | |
| − Debt left | $730M | |
| = Buyer's equity | $963M | |
| Money multiple | 1.32× | on $732M put in |
| Buyer's yearly return (IRR) | 5.6% |
Price against return
What the buyer makes at other premiums over today's $21.49; the IRR reaches 20% at $21.07 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $23.64 | 14.5% |
| 20% | $25.79 | 10.1% |
| 30% | $27.94 | 5.6% |
| 40% | $30.09 | 1.1% |
| 50% | $32.23 | −3.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $3.8B | |
| EBITDA, last 12 months | $344M | 9.0% of revenue |
| Depreciation and amortization | $147M | |
| Capital spending | $124M | |
| Debt | $200M | |
| Cash | $179M | |
| Share price | $21.49 | 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 1.2% 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 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, Millerknoll would cost about $28.47 a share, $2.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $25.79 | $1.8B |
| Median | 32.5% | $28.47 | $2.0B |
| High end (a quarter paid more) | 51.8% | $32.62 | $2.3B |
The odds, from history
Historically 3.5% of companies with its figures were bought within a year (0.69× 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.
Millerknoll's latest quarter
Millerknoll, Q1 FY27: revenue $923M (-3% year over year), operating margin 5.6%, net earnings $26.6M, operating cash flow $49.1M. The chart follows the revenue to costs, profit and cash.
Questions
Is Millerknoll being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Millerknoll?
A leveraged buyout at today's price plus 30% ($27.94 a share) would return about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $21.07 a share (−2% against today's $21.49).
What would a takeover of Millerknoll 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, Millerknoll would cost about $28.47 a share, $2.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.