Filing Flows › Surgery Partners (SGRY) › Takeover & LBO
Is Surgery Partners (SGRY) a takeover target?
A leveraged buyout at today's price plus 30% ($30.17 a share) would return about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $8.85 a share (−62% against today's $23.21). It already carries 6.3× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own. Latest signal (2026-11-03): Surgery Partners stock enters take-private focus after HealthSpan deal.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $30.17 | today's $23.21 plus 30% |
| × shares | 128.8 million | |
| = Equity value | $3.9B | |
| + Debt refinanced | $3.8B | |
| − Cash | $217M | |
| + Other claims | $1.4B | preferred stock, minority interests |
| = Enterprise value | $8.9B | 15.8× EBITDA of $561M |
| Fees | $177M | 2% of the price |
| New debt | $3.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $5.9B | 66% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $3.5B | $583M | $236M | $228M | $2.9B |
| Year 2 | $3.6B | $605M | $219M | $258M | $2.6B |
| Year 3 | $3.8B | $626M | $199M | $290M | $2.3B |
| Year 4 | $3.9B | $647M | $177M | $324M | $2.0B |
| Year 5 | $4.0B | $666M | $152M | $358M | $1.6B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $9.4B | |
| − Debt left | $1.6B | |
| = Buyer's equity | $7.8B | |
| Money multiple | 1.32× | on $5.9B put in |
| Buyer's yearly return (IRR) | 5.6% |
Price against return
What the buyer makes at other premiums over today's $23.21; the IRR reaches 20% at $8.85 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $25.53 | 8.0% |
| 20% | $27.85 | 6.8% |
| 30% | $30.17 | 5.6% |
| 40% | $32.49 | 4.6% |
| 50% | $34.81 | 3.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $3.4B | |
| EBITDA, last 12 months | $561M | 16.7% of revenue |
| Depreciation and amortization | $177M | |
| Capital spending | $70.4M | |
| Debt | $3.8B | |
| Cash | $217M | |
| Share price | $23.21 | 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 4.0% 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 20% 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, Surgery Partners would cost about $31.33 a share, $4.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $28.32 | $3.6B |
| Median | 35% | $31.33 | $4.0B |
| High end (a quarter paid more) | 45% | $33.65 | $4.3B |
Rumors and deal signals
- 2026-11-03 · news · Surgery Partners stock enters take-private focus after HealthSpan deal
- 2026-10-27 · news · Deal Roundup: Bain retains stake in $5.7bn Surgery Partners take-private; Ember strikes £505m Ashtead Technology deal
- 2026-10-27 · news · Surgery Partners (SGRY) Nears A Take Private Deal, Is The Offer Above Fair Value?
- 2026-10-26 · news · Bon Secours Affiliate to Acquire Surgery Partners in $5.7 Billion Take-Private Deal
- 2026-10-26 · news · Bain Capital to stay on as HealthSpan agrees $5.7bn Surgery Partners take-private
- 2026-10-26 · news · 6 Firms Steer $5.7B Surgery Partners Take-Private Deal
- 2026-10-26 · news · Brentwood-based Surgery Partners to go private in $5.7 billion deal
- 2026-10-26 · news · Market Chatter: Surgery Partners Nears Go-Private Takeover by Bon Secours
- 2026-10-26 · news · Surgery Partners Nears Go-Private Takeover by Bon Secours
- 2026-10-26 · news · Bon Secours Mercy Health to acquire majority stake in Surgery Partners in $5.7B deal
Surgery Partners' latest quarter
Surgery Partners, Q2 2026: revenue $849M (+3% year over year), operating margin 12.0%, net earnings $29.7M, operating cash flow $59.3M. The chart follows the revenue to costs, profit and cash.
Questions
Is Surgery Partners being acquired?
The latest signal on file is from 2026-11-03: Surgery Partners stock enters take-private focus after HealthSpan deal. A headline is not a deal; Filing Flows lists the news, 8-K filings and 13D filings about a sale.
Could private equity buy Surgery Partners?
A leveraged buyout at today's price plus 30% ($30.17 a share) would return about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $8.85 a share (−62% against today's $23.21). It already carries 6.3× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own.
What would a takeover of Surgery Partners 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, Surgery Partners would cost about $31.33 a share, $4.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.