Filing Flows › ResMed (RMD) › Takeover & LBO
Is ResMed (RMD) a takeover target?
A leveraged buyout at today's price plus 30% ($303.33 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 $186.19 a share (−20% against today's $233.33). Historically 2.0% of companies with its figures were bought within a year (0.4× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $303.33 | today's $233.33 plus 30% |
| × shares | 143.4 million | |
| = Equity value | $43.5B | |
| + Debt refinanced | $410M | |
| − Cash | $1.0B | |
| = Enterprise value | $42.9B | 20.5× EBITDA of $2.1B |
| Fees | $858M | 2% of the price |
| New debt | $11.5B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $32.3B | 74% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $6.2B | $2.3B | $879M | $913M | $10.6B |
| Year 2 | $6.6B | $2.4B | $809M | $1.1B | $9.5B |
| Year 3 | $7.0B | $2.5B | $726M | $1.3B | $8.2B |
| Year 4 | $7.3B | $2.6B | $630M | $1.4B | $6.8B |
| Year 5 | $7.5B | $2.7B | $522M | $1.6B | $5.3B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 15.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $42.9B | |
| − Debt left | $5.3B | |
| = Buyer's equity | $37.7B | |
| Money multiple | 1.17× | on $32.3B put in |
| Buyer's yearly return (IRR) | 3.1% |
Price against return
What the buyer makes at other premiums over today's $233.33; the IRR reaches 20% at $186.19 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $256.66 | 8.2% |
| 20% | $280.00 | 5.5% |
| 30% | $303.33 | 3.1% |
| 40% | $326.66 | 1.1% |
| 50% | $350.00 | −0.7% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $5.7B | |
| EBITDA, last 12 months | $2.1B | 36.4% of revenue |
| Depreciation and amortization | $195M | |
| Capital spending | $162M | |
| Debt | $410M | |
| Cash | $1.0B | |
| Share price | $233.33 | 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 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 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, ResMed would cost about $315.00 a share, $45.2B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $284.66 | $40.8B |
| Median | 35% | $315.00 | $45.2B |
| High end (a quarter paid more) | 45% | $338.33 | $48.5B |
The odds, from history
Historically 2.0% of companies with its figures were bought within a year (0.4× the average). Its figures put it in decile 1 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.
ResMed's latest quarter
ResMed, Q1 FY27: revenue $1.4B (+6% year over year), operating margin 32.0%, net earnings $418M, operating cash flow $422M. The chart follows the revenue to costs, profit and cash.
Questions
Is ResMed being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy ResMed?
A leveraged buyout at today's price plus 30% ($303.33 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 $186.19 a share (−20% against today's $233.33).
What would a takeover of ResMed 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, ResMed would cost about $315.00 a share, $45.2B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.