Filing Flows › Primoris Services (PRIM) › Takeover & LBO
Is Primoris Services (PRIM) a takeover target?
A leveraged buyout at today's price plus 30% ($85.57 a share) would return a loss of about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $37.28 a share (−43% against today's $65.82). Historically 3.3% of companies with its figures were bought within a year (0.66× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $85.57 | today's $65.82 plus 30% |
| × shares | 54.1 million | |
| = Equity value | $4.6B | |
| + Debt refinanced | $784M | |
| − Cash | $204M | |
| = Enterprise value | $5.2B | 18.4× EBITDA of $283M |
| Fees | $104M | 2% of the price |
| New debt | $1.6B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.8B | 71% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $6.8B | $274M | $119M | $31.2M | $1.5B |
| Year 2 | $6.7B | $270M | $117M | $31.2M | $1.5B |
| Year 3 | $6.7B | $270M | $114M | $32.8M | $1.5B |
| Year 4 | $6.8B | $274M | $112M | $26.2M | $1.4B |
| Year 5 | $7.1B | $282M | $110M | $20.7M | $1.4B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $4.1B | |
| − Debt left | $1.4B | |
| = Buyer's equity | $2.7B | |
| Money multiple | 0.72× | on $3.8B put in |
| Buyer's yearly return (IRR) | −6.2% |
Price against return
What the buyer makes at other premiums over today's $65.82; the IRR reaches 20% at $37.28 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $72.40 | −2.1% |
| 20% | $78.98 | −4.3% |
| 30% | $85.57 | −6.2% |
| 40% | $92.15 | −8.0% |
| 50% | $98.73 | −9.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $7.1B | |
| EBITDA, last 12 months | $283M | 4.0% of revenue |
| Depreciation and amortization | $113M | |
| Capital spending | $114M | |
| Debt | $784M | |
| Cash | $204M | |
| Share price | $65.82 | 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 29% 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, Primoris Services would cost about $92.15 a share, $5.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $75.50 | $4.1B |
| Median | 40% | $92.15 | $5.0B |
| High end (a quarter paid more) | 60.2% | $105.44 | $5.7B |
The odds, from history
Historically 3.3% of companies with its figures were bought within a year (0.66× 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.
Primoris Services' latest quarter
Primoris Services, Q3 2026: revenue $2.0B (-10% year over year), operating margin 4.9%, net earnings $51.3M, operating cash flow $140M. The chart follows the revenue to costs, profit and cash.
Questions
Is Primoris Services being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Primoris Services?
A leveraged buyout at today's price plus 30% ($85.57 a share) would return a loss of about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $37.28 a share (−43% against today's $65.82).
What would a takeover of Primoris Services 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, Primoris Services would cost about $92.15 a share, $5.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.