Filing Flows › Sonos (SONO) › Takeover & LBO
Is Sonos (SONO) a takeover target?
A leveraged buyout at today's price plus 30% ($21.02 a share) would return about 2% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 5.3% of companies with its figures were bought within a year (1.05× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $21.02 | today's $16.17 plus 30% |
| × shares | 121.0 million | |
| = Equity value | $2.5B | |
| + Debt refinanced | $24.9M | |
| − Cash | $207M | |
| = Enterprise value | $2.4B | 20.3× EBITDA of $117M |
| Fees | $47.2M | 2% of the price |
| New debt | $641M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $1.8B | 73% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.6B | $123M | $49.0M | $61.6M | $579M |
| Year 2 | $1.7B | $129M | $44.3M | $71.4M | $508M |
| Year 3 | $1.7B | $135M | $38.9M | $81.4M | $427M |
| Year 4 | $1.8B | $140M | $32.6M | $91.7M | $335M |
| Year 5 | $1.8B | $144M | $25.6M | $102M | $233M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 15.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $2.2B | |
| − Debt left | $233M | |
| = Buyer's equity | $2.0B | |
| Money multiple | 1.11× | on $1.8B put in |
| Buyer's yearly return (IRR) | 2.1% |
Price against return
What the buyer makes at other premiums over today's $16.17.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $17.79 | 7.4% |
| 20% | $19.40 | 4.6% |
| 30% | $21.02 | 2.1% |
| 40% | $22.64 | −0.1% |
| 50% | $24.26 | −2.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.5B | |
| EBITDA, last 12 months | $117M | 7.8% of revenue |
| Depreciation and amortization | $50.6M | |
| Debt | $24.9M | |
| Cash | $207M | |
| Share price | $16.17 | 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 5.6% 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 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Sonos would cost about $21.02 a share, $2.5B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $18.11 | $2.2B |
| Median | 30% | $21.02 | $2.5B |
| High end (a quarter paid more) | 31% | $21.18 | $2.6B |
The odds, from history
Historically 5.3% of companies with its figures were bought within a year (1.05× the average). Its figures put it in decile 6 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.
Sonos' latest quarter
Sonos, Q3 FY26: revenue $375M (+9% year over year), operating margin 8.4%, net earnings $29.9M, operating cash flow $46.2M. The chart follows the revenue to costs, profit and cash.
Questions
Is Sonos being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Sonos?
A leveraged buyout at today's price plus 30% ($21.02 a share) would return about 2% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Sonos cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Sonos would cost about $21.02 a share, $2.5B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.