Filing Flows › RH (RH) › Takeover & LBO
Is RH (RH) a takeover target?
A leveraged buyout at today's price plus 30% ($179.92 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 $91.72 a share (−34% against today's $138.40).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $179.92 | today's $138.40 plus 30% |
| × shares | 19.7 million | |
| = Equity value | $3.5B | |
| + Debt refinanced | $2.4B | |
| − Cash | $125M | |
| = Enterprise value | $5.8B | 11.5× EBITDA of $503M |
| Fees | $116M | 2% of the price |
| New debt | $2.8B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.1B | 53% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $3.6B | $519M | $211M | $76.5M | $2.7B |
| Year 2 | $3.7B | $536M | $206M | $88.6M | $2.6B |
| Year 3 | $3.8B | $553M | $199M | $101M | $2.5B |
| Year 4 | $3.9B | $570M | $191M | $115M | $2.4B |
| Year 5 | $4.0B | $588M | $182M | $129M | $2.3B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 9.9× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $5.8B | |
| − Debt left | $2.3B | |
| = Buyer's equity | $3.6B | |
| Money multiple | 1.13× | on $3.1B put in |
| Buyer's yearly return (IRR) | 2.5% |
Price against return
What the buyer makes at other premiums over today's $138.40; the IRR reaches 20% at $91.72 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $152.24 | 6.6% |
| 20% | $166.08 | 4.5% |
| 30% | $179.92 | 2.5% |
| 40% | $193.76 | 0.8% |
| 50% | $207.60 | −0.8% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $3.4B | |
| EBITDA, last 12 months | $503M | 14.6% of revenue |
| Depreciation and amortization | $158M | |
| Capital spending | $175M | |
| Debt | $2.4B | |
| Cash | $125M | |
| Share price | $138.40 | on Nov 5, 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 3.3% 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 27% 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, RH would cost about $183.38 a share, $3.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $166.08 | $3.3B |
| Median | 32.5% | $183.38 | $3.6B |
| High end (a quarter paid more) | 51.8% | $210.09 | $4.1B |
RH's latest quarter
RH, Q2 FY27: revenue $922M (+3% year over year), operating margin 11.7%, net earnings $60.2M, operating cash flow $145M. The chart follows the revenue to costs, profit and cash.
Questions
Is RH being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy RH?
A leveraged buyout at today's price plus 30% ($179.92 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 $91.72 a share (−34% against today's $138.40).
What would a takeover of RH 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, RH would cost about $183.38 a share, $3.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.