Filing Flows › Koninklijke Philips NV (PHG) › Takeover & LBO
Is Koninklijke Philips NV (PHG) a takeover target?
A leveraged buyout at today's price plus 30% ($39.46 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $25.25 a share (−17% against today's $30.35).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $39.46 | today's $30.35 plus 30% |
| × shares | 962.9 million | |
| = Equity value | $38.0B | |
| + Debt refinanced | $0 | |
| − Cash | $0 | |
| = Enterprise value | $38.0B | 14.9× EBITDA of $2.5B |
| Fees | $760M | 2% of the price |
| New debt | $14.0B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $24.7B | 64% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $18.4B | $2.6B | $1.1B | $1.1B | $12.9B |
| Year 2 | $18.9B | $2.7B | $986M | $1.3B | $11.6B |
| Year 3 | $19.5B | $2.8B | $890M | $1.4B | $10.3B |
| Year 4 | $20.1B | $2.9B | $784M | $1.5B | $8.7B |
| Year 5 | $20.7B | $3.0B | $667M | $1.7B | $7.0B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 11.5× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $33.9B | |
| − Debt left | $7.0B | |
| = Buyer's equity | $26.8B | |
| Money multiple | 1.09× | on $24.7B put in |
| Buyer's yearly return (IRR) | 1.6% |
Price against return
What the buyer makes at other premiums over today's $30.35; the IRR reaches 20% at $25.25 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $33.39 | 7.4% |
| 20% | $36.42 | 4.3% |
| 30% | $39.46 | 1.6% |
| 40% | $42.49 | −0.6% |
| 50% | $45.53 | −2.7% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $17.8B | |
| EBITDA, last 12 months | $2.5B | 14.3% of revenue |
| Depreciation and amortization | $1.1B | |
| Capital spending | $269M | |
| Debt | $0 | |
| Cash | $0 | |
| Share price | $30.35 | 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 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 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 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, Koninklijke Philips NV would cost about $40.97 a share, $39.5B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $37.03 | $35.7B |
| Median | 35% | $40.97 | $39.5B |
| High end (a quarter paid more) | 45% | $44.01 | $42.4B |
Koninklijke Philips NV's latest quarter
Koninklijke Philips NV, Q3 2026: revenue $4.4B (+2% year over year), operating margin 3.8%, net earnings $28.0M, operating cash flow $544M. The chart follows the revenue to costs, profit and cash.
Questions
Is Koninklijke Philips NV being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Koninklijke Philips NV?
A leveraged buyout at today's price plus 30% ($39.46 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $25.25 a share (−17% against today's $30.35).
What would a takeover of Koninklijke Philips NV 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, Koninklijke Philips NV would cost about $40.97 a share, $39.5B for all its shares.
Updated Nov 9, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.