Filing Flows › Solventum (SOLV) › Takeover & LBO
Is Solventum (SOLV) a takeover target?
A leveraged buyout at today's price plus 30% ($118.81 a share) would return a loss of about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $41.27 a share (−55% against today's $91.39). Historically 3.2% of companies with its figures were bought within a year (0.63× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $118.81 | today's $91.39 plus 30% |
| × shares | 170.8 million | |
| = Equity value | $20.3B | |
| + Debt refinanced | $5.0B | |
| − Cash | $451M | |
| = Enterprise value | $24.9B | 25.5× EBITDA of $975M |
| Fees | $498M | 2% of the price |
| New debt | $5.4B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $20.0B | 79% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $7.9B | $947M | $410M | $232M | $5.1B |
| Year 2 | $7.8B | $934M | $392M | $240M | $4.9B |
| Year 3 | $7.8B | $935M | $374M | $256M | $4.6B |
| Year 4 | $7.9B | $949M | $355M | $270M | $4.4B |
| Year 5 | $8.2B | $978M | $334M | $295M | $4.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 20.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $20.3B | |
| − Debt left | $4.1B | |
| = Buyer's equity | $16.2B | |
| Money multiple | 0.81× | on $20.0B put in |
| Buyer's yearly return (IRR) | −4.2% |
Price against return
What the buyer makes at other premiums over today's $91.39; the IRR reaches 20% at $41.27 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $100.53 | −0.8% |
| 20% | $109.67 | −2.6% |
| 30% | $118.81 | −4.2% |
| 40% | $127.95 | −5.6% |
| 50% | $137.09 | −7.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $8.2B | |
| EBITDA, last 12 months | $975M | 11.9% of revenue |
| Depreciation and amortization | $521M | |
| Capital spending | $310M | |
| Debt | $5.0B | |
| Cash | $451M | |
| Share price | $91.39 | 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 -2.8% 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 12% 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, Solventum would cost about $123.38 a share, $21.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $111.50 | $19.0B |
| Median | 35% | $123.38 | $21.1B |
| High end (a quarter paid more) | 45% | $132.52 | $22.6B |
The odds, from history
Historically 3.2% of companies with its figures were bought within a year (0.63× the average). Its figures put it in decile 2 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.
Solventum's latest quarter
Solventum, Q3 2026: revenue $1.9B (-7% year over year), operating margin 3.5%, net loss $12.0M, operating cash flow $177M. The chart follows the revenue to costs, profit and cash.
Questions
Is Solventum being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Solventum?
A leveraged buyout at today's price plus 30% ($118.81 a share) would return a loss of about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $41.27 a share (−55% against today's $91.39).
What would a takeover of Solventum 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, Solventum would cost about $123.38 a share, $21.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.