Filing Flows › Resideo Technologies (REZI) › Takeover & LBO
Is Resideo Technologies (REZI) a takeover target?
A leveraged buyout at today's price plus 30% ($25.34 a share) would return about 8% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $15.70 a share (−19% against today's $19.49). Historically 3.2% of companies with its figures were bought within a year (0.64× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $25.34 | today's $19.49 plus 30% |
| × shares | 154.0 million | |
| = Equity value | $3.9B | |
| + Debt refinanced | $3.6B | |
| − Cash | $549M | |
| + Other claims | $482M | preferred stock, minority interests |
| = Enterprise value | $7.5B | 10.3× EBITDA of $727M |
| Fees | $149M | 2% of the price |
| New debt | $4.0B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.6B | 47% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $7.9B | $752M | $306M | $256M | $3.7B |
| Year 2 | $8.2B | $777M | $286M | $291M | $3.5B |
| Year 3 | $8.4B | $802M | $264M | $329M | $3.1B |
| Year 4 | $8.7B | $827M | $239M | $369M | $2.8B |
| Year 5 | $9.0B | $851M | $211M | $412M | $2.3B |
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 | $7.7B | |
| − Debt left | $2.3B | |
| = Buyer's equity | $5.3B | |
| Money multiple | 1.48× | on $3.6B put in |
| Buyer's yearly return (IRR) | 8.2% |
Price against return
What the buyer makes at other premiums over today's $19.49; the IRR reaches 20% at $15.70 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $21.44 | 12.2% |
| 20% | $23.39 | 10.1% |
| 30% | $25.34 | 8.2% |
| 40% | $27.29 | 6.4% |
| 50% | $29.23 | 4.8% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $7.7B | |
| EBITDA, last 12 months | $727M | 9.5% of revenue |
| Depreciation and amortization | $200M | |
| Capital spending | $130M | |
| Debt | $3.6B | |
| Cash | $549M | |
| Share price | $19.49 | 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 3.4% 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, Resideo Technologies would cost about $27.29 a share, $4.2B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $22.36 | $3.4B |
| Median | 40% | $27.29 | $4.2B |
| High end (a quarter paid more) | 60.2% | $31.22 | $4.8B |
The odds, from history
Historically 3.2% of companies with its figures were bought within a year (0.64× 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.
Resideo Technologies' latest quarter
Resideo Technologies, Q2 2026: revenue $2.0B (+2% year over year), operating margin 6.6%, net earnings $97.0M, operating cash flow $148M. The chart follows the revenue to costs, profit and cash.
Questions
Is Resideo Technologies being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Resideo Technologies?
A leveraged buyout at today's price plus 30% ($25.34 a share) would return about 8% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $15.70 a share (−19% against today's $19.49).
What would a takeover of Resideo Technologies 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, Resideo Technologies would cost about $27.29 a share, $4.2B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.