Filing Flows › Skywest (SKYW) › Takeover & LBO
Is Skywest (SKYW) a takeover target?
A leveraged buyout at today's price plus 30% ($107.03 a share) would return about 12% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $84.67 a share (3% against today's $82.33).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $107.03 | today's $82.33 plus 30% |
| × shares | 38.8 million | |
| = Equity value | $4.2B | |
| + Debt refinanced | $2.4B | |
| − Cash | $569M | |
| = Enterprise value | $6.0B | 6.3× EBITDA of $941M |
| Fees | $119M | 2% of the price |
| New debt | $3.9B | 4.1× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $2.2B | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $4.6B | $1.0B | $296M | $201M | $3.7B |
| Year 2 | $4.8B | $1.1B | $281M | $243M | $3.4B |
| Year 3 | $5.1B | $1.1B | $262M | $285M | $3.1B |
| Year 4 | $5.3B | $1.2B | $240M | $326M | $2.8B |
| Year 5 | $5.4B | $1.2B | $215M | $366M | $2.4B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 5.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $6.4B | |
| − Debt left | $2.4B | |
| = Buyer's equity | $3.9B | |
| Money multiple | 1.78× | on $2.2B put in |
| Buyer's yearly return (IRR) | 12.3% |
Price against return
What the buyer makes at other premiums over today's $82.33; the IRR reaches 20% at $84.67 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $90.56 | 17.9% |
| 20% | $98.80 | 15.1% |
| 30% | $107.03 | 12.3% |
| 40% | $115.26 | 9.5% |
| 50% | $123.50 | 6.7% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $4.3B | |
| EBITDA, last 12 months | $941M | 22.1% of revenue |
| Depreciation and amortization | $351M | |
| Capital spending | $380M | |
| Debt | $2.4B | |
| Cash | $569M | |
| Share price | $82.33 | 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 7.0% 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 22% 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, Skywest would cost about $115.26 a share, $4.5B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $94.43 | $3.7B |
| Median | 40% | $115.26 | $4.5B |
| High end (a quarter paid more) | 60.2% | $131.89 | $5.1B |
Skywest's latest quarter
Skywest, Q3 2026: revenue $1.1B (+6% year over year), operating margin 15.8%, net earnings $120M, operating cash flow $131M. The chart follows the revenue to costs, profit and cash.
Questions
Is Skywest being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Skywest?
A leveraged buyout at today's price plus 30% ($107.03 a share) would return about 12% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $84.67 a share (3% against today's $82.33).
What would a takeover of Skywest 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, Skywest would cost about $115.26 a share, $4.5B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.