Filing Flows › RPC (RES) › Takeover & LBO
Is RPC (RES) a takeover target?
A leveraged buyout at today's price plus 30% ($8.02 a share) would return a loss of about 18% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $8.02 | today's $6.17 plus 30% |
| × shares | 215.0 million | |
| = Equity value | $1.7B | |
| + Debt refinanced | $0 | |
| − Cash | $177M | |
| = Enterprise value | $1.5B | 12.2× EBITDA of $127M |
| Fees | $30.9M | 2% of the price |
| New debt | $700M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $878M | 56% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.0B | $137M | $53.5M | −$83.2M | $783M |
| Year 2 | $2.1B | $147M | $59.9M | −$89.4M | $872M |
| Year 3 | $2.2B | $155M | $66.7M | −$95.4M | $968M |
| Year 4 | $2.3B | $161M | $74.0M | −$101M | $1.1B |
| Year 5 | $2.4B | $166M | $81.8M | −$107M | $1.2B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 9.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.5B | |
| − Debt left | $1.2B | |
| = Buyer's equity | $325M | |
| Money multiple | 0.37× | on $878M put in |
| Buyer's yearly return (IRR) | −18.0% |
Price against return
What the buyer makes at other premiums over today's $6.17.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $6.79 | −11.8% |
| 20% | $7.40 | −15.2% |
| 30% | $8.02 | −18.0% |
| 40% | $8.64 | −20.3% |
| 50% | $9.25 | −22.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.8B | |
| EBITDA, last 12 months | $127M | 7.0% of revenue |
| Depreciation and amortization | $168M | |
| Capital spending | $141M | |
| Debt | $0 | |
| Cash | $177M | |
| Share price | $6.17 | 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 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 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, RPC would cost about $8.18 a share, $1.8B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $7.40 | $1.6B |
| Median | 32.5% | $8.18 | $1.8B |
| High end (a quarter paid more) | 51.8% | $9.37 | $2.0B |
RPC's latest quarter
RPC, Q3 2026: revenue $468M (+5% year over year), operating margin -11.5%, net loss $41.9M, operating cash flow $41.1M. The chart follows the revenue to costs, profit and cash.
Questions
Is RPC being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy RPC?
A leveraged buyout at today's price plus 30% ($8.02 a share) would return a loss of about 18% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of RPC 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, RPC would cost about $8.18 a share, $1.8B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.