Filing Flows › Parker-Hannifin (PH) › Takeover & LBO
Is Parker-Hannifin (PH) a takeover target?
A leveraged buyout at today's price plus 30% ($1,159.98 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 $613.63 a share (−31% against today's $892.29). At $165.1B 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 2.4% of companies with its figures were bought within a year (0.48× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $1,159.98 | today's $892.29 plus 30% |
| × shares | 127.8 million | |
| = Equity value | $148.2B | |
| + Debt refinanced | $17.4B | |
| − Cash | $711M | |
| + Other claims | $102M | preferred stock, minority interests |
| = Enterprise value | $165.1B | 26.3× EBITDA of $6.3B |
| Fees | $3.3B | 2% of the price |
| New debt | $34.6B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $133.8B | 79% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $24.2B | $6.8B | $2.6B | $2.8B | $31.7B |
| Year 2 | $25.8B | $7.2B | $2.4B | $3.4B | $28.4B |
| Year 3 | $27.3B | $7.6B | $2.2B | $3.9B | $24.5B |
| Year 4 | $28.4B | $8.0B | $1.9B | $4.4B | $20.1B |
| Year 5 | $29.3B | $8.2B | $1.5B | $4.9B | $15.2B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 20.8× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $170.9B | |
| − Debt left | $15.2B | |
| = Buyer's equity | $155.7B | |
| Money multiple | 1.16× | on $133.8B put in |
| Buyer's yearly return (IRR) | 3.1% |
Price against return
What the buyer makes at other premiums over today's $892.29; the IRR reaches 20% at $613.63 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $981.52 | 7.1% |
| 20% | $1,070.75 | 5.0% |
| 30% | $1,159.98 | 3.1% |
| 40% | $1,249.21 | 1.4% |
| 50% | $1,338.43 | −0.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $22.4B | |
| EBITDA, last 12 months | $6.3B | 28.1% of revenue |
| Depreciation and amortization | $991M | |
| Capital spending | $479M | |
| Debt | $17.4B | |
| Cash | $711M | |
| Share price | $892.29 | 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 20% 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, Parker-Hannifin would cost about $1,249.21 a share, $159.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $1,023.46 | $130.8B |
| Median | 40% | $1,249.21 | $159.6B |
| High end (a quarter paid more) | 60.2% | $1,429.45 | $182.7B |
The odds, from history
Historically 2.4% of companies with its figures were bought within a year (0.48× 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.
Parker-Hannifin's latest quarter
Parker-Hannifin, Q1 FY27: revenue $6.0B (+18% year over year), operating margin 23.5%, net earnings $884M, operating cash flow $752M. The chart follows the revenue to costs, profit and cash.
Questions
Is Parker-Hannifin being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Parker-Hannifin?
A leveraged buyout at today's price plus 30% ($1,159.98 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 $613.63 a share (−31% against today's $892.29). At $165.1B 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 Parker-Hannifin 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, Parker-Hannifin would cost about $1,249.21 a share, $159.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.