Filing Flows › RadNet (RDNT) › Takeover & LBO
Is RadNet (RDNT) a takeover target?
A leveraged buyout at today's price plus 30% ($95.54 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $38.92 a share (−47% against today's $73.49). Historically 5.5% of companies with its figures were bought within a year (1.09× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $95.54 | today's $73.49 plus 30% |
| × shares | 78.7 million | |
| = Equity value | $7.5B | |
| + Debt refinanced | $1.3B | |
| − Cash | $726M | |
| + Other claims | $298M | preferred stock, minority interests |
| = Enterprise value | $8.4B | 34.8× EBITDA of $242M |
| Fees | $169M | 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 | $7.3B | 85% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.5B | $261M | $102M | −$115M | $1.4B |
| Year 2 | $2.6B | $279M | $111M | −$122M | $1.6B |
| Year 3 | $2.8B | $294M | $120M | −$129M | $1.7B |
| Year 4 | $2.9B | $307M | $130M | −$136M | $1.8B |
| Year 5 | $3.0B | $316M | $140M | −$143M | $2.0B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 27.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $8.7B | |
| − Debt left | $2.0B | |
| = Buyer's equity | $6.8B | |
| Money multiple | 0.93× | on $7.3B put in |
| Buyer's yearly return (IRR) | −1.4% |
Price against return
What the buyer makes at other premiums over today's $73.49; the IRR reaches 20% at $38.92 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $80.84 | 2.1% |
| 20% | $88.19 | 0.3% |
| 30% | $95.54 | −1.4% |
| 40% | $102.89 | −3.0% |
| 50% | $110.23 | −4.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.3B | |
| EBITDA, last 12 months | $242M | 10.7% of revenue |
| Depreciation and amortization | $171M | |
| Capital spending | $238M | |
| Debt | $1.3B | |
| Cash | $726M | |
| Share price | $73.49 | 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 30% 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, RadNet would cost about $99.21 a share, $7.8B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $89.66 | $7.1B |
| Median | 35% | $99.21 | $7.8B |
| High end (a quarter paid more) | 45% | $106.56 | $8.4B |
The odds, from history
Historically 5.5% of companies with its figures were bought within a year (1.09× the average). Its figures put it in decile 7 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.
RadNet's latest quarter
RadNet, Q2 2026: revenue $623M (+25% year over year), operating margin 6.3%, net earnings $7.5M, operating cash flow $94.1M. The chart follows the revenue to costs, profit and cash.
Questions
Is RadNet being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy RadNet?
A leveraged buyout at today's price plus 30% ($95.54 a share) would return a loss of about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $38.92 a share (−47% against today's $73.49).
What would a takeover of RadNet 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, RadNet would cost about $99.21 a share, $7.8B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.