Filing Flows › Quinstreet (QNST) › Takeover & LBO
Is Quinstreet (QNST) a takeover target?
A leveraged buyout at today's price plus 30% ($22.62 a share) would return about 5% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 4.5% of companies with its figures were bought within a year (0.9× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $22.62 | today's $17.40 plus 30% |
| × shares | 58.9 million | |
| = Equity value | $1.3B | |
| + Debt refinanced | $70.0M | |
| − Cash | $142M | |
| = Enterprise value | $1.3B | 15.9× EBITDA of $79.5M |
| Fees | $25.2M | 2% of the price |
| New debt | $437M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $848M | 66% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.5B | $85.8M | $33.4M | $35.5M | $402M |
| Year 2 | $1.6B | $91.6M | $30.7M | $44.0M | $358M |
| Year 3 | $1.7B | $96.7M | $27.4M | $52.8M | $305M |
| Year 4 | $1.8B | $101M | $23.3M | $61.7M | $243M |
| Year 5 | $1.9B | $104M | $18.6M | $70.4M | $173M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 12.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.2B | |
| − Debt left | $173M | |
| = Buyer's equity | $1.1B | |
| Money multiple | 1.26× | on $848M put in |
| Buyer's yearly return (IRR) | 4.8% |
Price against return
What the buyer makes at other premiums over today's $17.40.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $19.14 | 10.9% |
| 20% | $20.88 | 7.6% |
| 30% | $22.62 | 4.8% |
| 40% | $24.36 | 2.4% |
| 50% | $26.10 | 0.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.4B | |
| EBITDA, last 12 months | $79.5M | 5.6% of revenue |
| Depreciation and amortization | $25.5M | |
| Capital spending | $2.4M | |
| Debt | $70.0M | |
| Cash | $142M | |
| Share price | $17.40 | 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 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, Quinstreet would cost about $24.36 a share, $1.4B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $19.96 | $1.2B |
| Median | 40% | $24.36 | $1.4B |
| High end (a quarter paid more) | 60.2% | $27.87 | $1.6B |
The odds, from history
Historically 4.5% of companies with its figures were bought within a year (0.9× 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.
Quinstreet's latest quarter
Quinstreet, Q1 FY27: revenue $417M (+46% year over year), operating margin 5.6%, net earnings $17.0M, operating cash flow $23.3M. The chart follows the revenue to costs, profit and cash.
Questions
Is Quinstreet being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Quinstreet?
A leveraged buyout at today's price plus 30% ($22.62 a share) would return about 5% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Quinstreet 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, Quinstreet would cost about $24.36 a share, $1.4B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.