Filing Flows › Construction Partners (ROAD) › Takeover & LBO
Is Construction Partners (ROAD) a takeover target?
A leveraged buyout at today's price plus 30% ($116.74 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 $63.22 a share (−30% against today's $89.80). Historically 4.7% of companies with its figures were bought within a year (0.93× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $116.74 | today's $89.80 plus 30% |
| × shares | 56.3 million | |
| = Equity value | $6.6B | |
| + Debt refinanced | $1.6B | |
| − Cash | $94.5M | |
| = Enterprise value | $8.1B | 17.4× EBITDA of $466M |
| Fees | $162M | 2% of the price |
| New debt | $2.6B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $5.7B | 69% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $3.8B | $504M | $196M | $57.3M | $2.5B |
| Year 2 | $4.0B | $538M | $192M | $78.8M | $2.4B |
| Year 3 | $4.2B | $567M | $186M | $100M | $2.3B |
| Year 4 | $4.4B | $591M | $178M | $121M | $2.2B |
| Year 5 | $4.5B | $609M | $169M | $141M | $2.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $8.6B | |
| − Debt left | $2.1B | |
| = Buyer's equity | $6.5B | |
| Money multiple | 1.15× | on $5.7B put in |
| Buyer's yearly return (IRR) | 2.8% |
Price against return
What the buyer makes at other premiums over today's $89.80; the IRR reaches 20% at $63.22 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $98.78 | 7.0% |
| 20% | $107.76 | 4.7% |
| 30% | $116.74 | 2.8% |
| 40% | $125.72 | 1.0% |
| 50% | $134.70 | −0.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $3.5B | |
| EBITDA, last 12 months | $466M | 13.4% of revenue |
| Depreciation and amortization | $168M | |
| Capital spending | $177M | |
| Debt | $1.6B | |
| Cash | $94.5M | |
| Share price | $89.80 | 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 25% 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, Construction Partners would cost about $125.72 a share, $7.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $103.00 | $5.8B |
| Median | 40% | $125.72 | $7.1B |
| High end (a quarter paid more) | 60.2% | $143.86 | $8.1B |
The odds, from history
Historically 4.7% of companies with its figures were bought within a year (0.93× the average). Its figures put it in decile 5 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.
Construction Partners' latest quarter
Construction Partners, Q3 FY26: revenue $999M (+28% year over year), operating margin 10.9%, net earnings $59.6M, operating cash flow $93.1M. The chart follows the revenue to costs, profit and cash.
Questions
Is Construction Partners being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Construction Partners?
A leveraged buyout at today's price plus 30% ($116.74 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 $63.22 a share (−30% against today's $89.80).
What would a takeover of Construction Partners 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, Construction Partners would cost about $125.72 a share, $7.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.