Filing Flows › Northrop Grumman (NOC) › Takeover & LBO
Is Northrop Grumman (NOC) a takeover target?
A leveraged buyout at today's price plus 30% ($682.83 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $394.06 a share (−25% against today's $525.25). At $109.2B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect. Historically 2.2% of companies with its figures were bought within a year (0.44× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $682.83 | today's $525.25 plus 30% |
| × shares | 142.4 million | |
| = Equity value | $97.2B | |
| + Debt refinanced | $15.7B | |
| − Cash | $3.7B | |
| = Enterprise value | $109.2B | 17.8× EBITDA of $6.1B |
| Fees | $2.2B | 2% of the price |
| New debt | $33.8B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $77.6B | 70% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $46.4B | $6.5B | $2.6B | $1.8B | $32.0B |
| Year 2 | $49.0B | $6.9B | $2.4B | $2.2B | $29.8B |
| Year 3 | $51.4B | $7.2B | $2.3B | $2.6B | $27.2B |
| Year 4 | $53.4B | $7.5B | $2.1B | $3.0B | $24.2B |
| Year 5 | $55.0B | $7.8B | $1.8B | $3.4B | $20.8B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $109.4B | |
| − Debt left | $20.8B | |
| = Buyer's equity | $88.6B | |
| Money multiple | 1.14× | on $77.6B put in |
| Buyer's yearly return (IRR) | 2.7% |
Price against return
What the buyer makes at other premiums over today's $525.25; the IRR reaches 20% at $394.06 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $577.78 | 7.3% |
| 20% | $630.30 | 4.8% |
| 30% | $682.83 | 2.7% |
| 40% | $735.35 | 0.8% |
| 50% | $787.88 | −0.9% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $43.6B | |
| EBITDA, last 12 months | $6.1B | 14.1% of revenue |
| Depreciation and amortization | $1.5B | |
| Capital spending | $1.4B | |
| Debt | $15.7B | |
| Cash | $3.7B | |
| Share price | $525.25 | 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 6.5% 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 14% 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, Northrop Grumman would cost about $735.35 a share, $104.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $602.46 | $85.8B |
| Median | 40% | $735.35 | $104.7B |
| High end (a quarter paid more) | 60.2% | $841.45 | $119.8B |
The odds, from history
Historically 2.2% of companies with its figures were bought within a year (0.44× the average). Its figures put it in decile 1 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.
Northrop Grumman's latest quarter
Northrop Grumman, Q3 2026: revenue $11.1B (+7% year over year), operating margin 11.4%, net earnings $1.1B, operating cash flow $1.7B. The chart follows the revenue to costs, profit and cash.
Questions
Is Northrop Grumman being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Northrop Grumman?
A leveraged buyout at today's price plus 30% ($682.83 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $394.06 a share (−25% against today's $525.25). At $109.2B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect.
What would a takeover of Northrop Grumman 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, Northrop Grumman would cost about $735.35 a share, $104.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.