Filing Flows › Sezzle (SEZL) › Takeover & LBO
Is Sezzle (SEZL) a takeover target?
A leveraged buyout at today's price plus 30% ($167.86 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 $96.65 a share (−25% against today's $129.12). Historically 3.7% of companies with its figures were bought within a year (0.74× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $167.86 | today's $129.12 plus 30% |
| × shares | 34.7 million | |
| = Equity value | $5.8B | |
| + Debt refinanced | $0 | |
| − Cash | $79.8M | |
| = Enterprise value | $5.7B | 26.6× EBITDA of $217M |
| Fees | $115M | 2% of the price |
| New debt | $1.2B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $4.7B | 80% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $574M | $234M | $91.1M | $117M | $1.1B |
| Year 2 | $613M | $250M | $82.2M | $138M | $936M |
| Year 3 | $647M | $263M | $71.6M | $159M | $777M |
| Year 4 | $674M | $275M | $59.5M | $180M | $598M |
| Year 5 | $695M | $283M | $45.7M | $199M | $399M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 20.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $5.8B | |
| − Debt left | $399M | |
| = Buyer's equity | $5.4B | |
| Money multiple | 1.15× | on $4.7B put in |
| Buyer's yearly return (IRR) | 2.8% |
Price against return
What the buyer makes at other premiums over today's $129.12; the IRR reaches 20% at $96.65 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $142.03 | 7.3% |
| 20% | $154.94 | 4.9% |
| 30% | $167.86 | 2.8% |
| 40% | $180.77 | 0.9% |
| 50% | $193.68 | −0.9% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $532M | |
| EBITDA, last 12 months | $217M | 40.7% of revenue |
| Depreciation and amortization | $1.7M | |
| Capital spending | $989K | |
| Debt | $0 | |
| Cash | $79.8M | |
| Share price | $129.12 | on Oct 13, 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 15% 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, Sezzle would cost about $180.77 a share, $6.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $148.10 | $5.1B |
| Median | 40% | $180.77 | $6.3B |
| High end (a quarter paid more) | 60.2% | $206.85 | $7.2B |
The odds, from history
Historically 3.7% of companies with its figures were bought within a year (0.74× 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.
Sezzle's latest quarter
Sezzle, Q3 2026: revenue $167M (+43% year over year), operating margin 38.6%, net earnings $47.8M, operating cash flow $86.7M. The chart follows the revenue to costs, profit and cash.
Questions
Is Sezzle being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Sezzle?
A leveraged buyout at today's price plus 30% ($167.86 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 $96.65 a share (−25% against today's $129.12).
What would a takeover of Sezzle 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, Sezzle would cost about $180.77 a share, $6.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.