Filing Flows › Perimeter Group (PRM) › Takeover & LBO
Is Perimeter Group (PRM) a takeover target?
A leveraged buyout at today's price plus 30% ($36.48 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 $16.86 a share (−40% against today's $28.06). Historically 5.9% of companies with its figures were bought within a year (1.18× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $36.48 | today's $28.06 plus 30% |
| × shares | 175.0 million | |
| = Equity value | $6.4B | |
| + Debt refinanced | $1.2B | |
| − Cash | $116M | |
| + Other claims | $100M | preferred stock, minority interests |
| = Enterprise value | $7.6B | 33.3× EBITDA of $227M |
| Fees | $152M | 2% of the price |
| New debt | $1.3B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $6.5B | 84% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $898M | $246M | $95.7M | $97.8M | $1.2B |
| Year 2 | $959M | $262M | $88.2M | $118M | $1.0B |
| Year 3 | $1.0B | $277M | $79.2M | $138M | $897M |
| Year 4 | $1.1B | $288M | $68.7M | $157M | $741M |
| Year 5 | $1.1B | $297M | $56.7M | $175M | $566M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 26.8× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $8.0B | |
| − Debt left | $566M | |
| = Buyer's equity | $7.4B | |
| Money multiple | 1.14× | on $6.5B put in |
| Buyer's yearly return (IRR) | 2.7% |
Price against return
What the buyer makes at other premiums over today's $28.06; the IRR reaches 20% at $16.86 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $30.87 | 6.2% |
| 20% | $33.67 | 4.4% |
| 30% | $36.48 | 2.7% |
| 40% | $39.28 | 1.2% |
| 50% | $42.09 | −0.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $831M | |
| EBITDA, last 12 months | $227M | 27.3% of revenue |
| Depreciation and amortization | $107M | |
| Capital spending | $38.2M | |
| Debt | $1.2B | |
| Cash | $116M | |
| Share price | $28.06 | on Oct 30, 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 12% 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 on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Perimeter Group would cost about $37.18 a share, $6.5B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $33.67 | $5.9B |
| Median | 32.5% | $37.18 | $6.5B |
| High end (a quarter paid more) | 51.8% | $42.60 | $7.5B |
The odds, from history
Historically 5.9% of companies with its figures were bought within a year (1.18× the average). Its figures put it in decile 8 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.
Perimeter Group's latest quarter
Perimeter Group, Q3 2026: revenue $390M (+24% year over year), operating margin 106.8%, net earnings $304M, operating cash flow $163M. The chart follows the revenue to costs, profit and cash.
Questions
Is Perimeter Group being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Perimeter Group?
A leveraged buyout at today's price plus 30% ($36.48 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 $16.86 a share (−40% against today's $28.06).
What would a takeover of Perimeter Group cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Perimeter Group would cost about $37.18 a share, $6.5B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.