Filing Flows › Douglas Dynamics (PLOW) › Takeover & LBO
Is Douglas Dynamics (PLOW) a takeover target?
A leveraged buyout at today's price plus 30% ($50.95 a share) would return about 7% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $37.37 a share (−5% against today's $39.19). Historically 4.4% of companies with its figures were bought within a year (0.88× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $50.95 | today's $39.19 plus 30% |
| × shares | 23.5 million | |
| = Equity value | $1.2B | |
| + Debt refinanced | $149M | |
| − Cash | $8.3M | |
| = Enterprise value | $1.3B | 12.0× EBITDA of $111M |
| Fees | $26.8M | 2% of the price |
| New debt | $612M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $754M | 55% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $815M | $120M | $46.9M | $40.9M | $572M |
| Year 2 | $870M | $128M | $43.7M | $49.5M | $522M |
| Year 3 | $918M | $135M | $39.9M | $58.1M | $464M |
| Year 4 | $957M | $141M | $35.5M | $66.5M | $397M |
| Year 5 | $986M | $145M | $30.4M | $74.5M | $323M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 9.5× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.4B | |
| − Debt left | $323M | |
| = Buyer's equity | $1.1B | |
| Money multiple | 1.41× | on $754M put in |
| Buyer's yearly return (IRR) | 7.2% |
Price against return
What the buyer makes at other premiums over today's $39.19; the IRR reaches 20% at $37.37 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $43.11 | 13.5% |
| 20% | $47.03 | 10.1% |
| 30% | $50.95 | 7.2% |
| 40% | $54.87 | 4.7% |
| 50% | $58.78 | 2.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $755M | |
| EBITDA, last 12 months | $111M | 14.7% of revenue |
| Depreciation and amortization | $15.4M | |
| Capital spending | $13.3M | |
| Debt | $149M | |
| Cash | $8.3M | |
| Share price | $39.19 | on Oct 9, 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 21% 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, Douglas Dynamics would cost about $54.87 a share, $1.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $44.95 | $1.1B |
| Median | 40% | $54.87 | $1.3B |
| High end (a quarter paid more) | 60.2% | $62.78 | $1.5B |
The odds, from history
Historically 4.4% of companies with its figures were bought within a year (0.88× the average). Its figures put it in decile 5 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.
Douglas Dynamics' latest quarter
Douglas Dynamics, Q3 2026: revenue $218M (+34% year over year), operating margin 14.3%, net earnings $21.2M, operating cash flow −$22.3M. The chart follows the revenue to costs, profit and cash.
Questions
Is Douglas Dynamics being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Douglas Dynamics?
A leveraged buyout at today's price plus 30% ($50.95 a share) would return about 7% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $37.37 a share (−5% against today's $39.19).
What would a takeover of Douglas Dynamics 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, Douglas Dynamics would cost about $54.87 a share, $1.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.