Filing Flows › Stryker (SYK) › Takeover & LBO
Is Stryker (SYK) a takeover target?
A leveraged buyout at today's price plus 30% ($435.60 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $234.64 a share (−30% against today's $335.08). At $179.2B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect. Historically 2.6% of companies with its figures were bought within a year (0.52× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $435.60 | today's $335.08 plus 30% |
| × shares | 384.7 million | |
| = Equity value | $167.6B | |
| + Debt refinanced | $14.9B | |
| − Cash | $3.3B | |
| = Enterprise value | $179.2B | 25.4× EBITDA of $7.0B |
| Fees | $3.6B | 2% of the price |
| New debt | $38.8B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $144.1B | 79% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $28.4B | $7.6B | $3.0B | $2.6B | $36.1B |
| Year 2 | $30.3B | $8.1B | $2.8B | $3.1B | $33.0B |
| Year 3 | $31.9B | $8.5B | $2.5B | $3.6B | $29.4B |
| Year 4 | $33.2B | $8.9B | $2.2B | $4.1B | $25.3B |
| Year 5 | $34.2B | $9.2B | $1.9B | $4.5B | $20.8B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 19.9× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $183.0B | |
| − Debt left | $20.8B | |
| = Buyer's equity | $162.2B | |
| Money multiple | 1.13× | on $144.1B put in |
| Buyer's yearly return (IRR) | 2.4% |
Price against return
What the buyer makes at other premiums over today's $335.08; the IRR reaches 20% at $234.64 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $368.59 | 6.6% |
| 20% | $402.10 | 4.4% |
| 30% | $435.60 | 2.4% |
| 40% | $469.11 | 0.6% |
| 50% | $502.62 | −1.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $26.3B | |
| EBITDA, last 12 months | $7.0B | 26.8% of revenue |
| Depreciation and amortization | $1.6B | |
| Capital spending | $873M | |
| Debt | $14.9B | |
| Cash | $3.3B | |
| Share price | $335.08 | 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 7.9% 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 29% 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, Stryker would cost about $452.36 a share, $174.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $408.80 | $157.3B |
| Median | 35% | $452.36 | $174.0B |
| High end (a quarter paid more) | 45% | $485.87 | $186.9B |
The odds, from history
Historically 2.6% of companies with its figures were bought within a year (0.52× 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.
Stryker's latest quarter
Stryker, Q3 2026: revenue $6.5B (+8% year over year), operating margin 15.9%, net earnings $753M, operating cash flow $1.5B. The chart follows the revenue to costs, profit and cash.
Questions
Is Stryker being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Stryker?
A leveraged buyout at today's price plus 30% ($435.60 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $234.64 a share (−30% against today's $335.08). At $179.2B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect.
What would a takeover of Stryker 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, Stryker would cost about $452.36 a share, $174.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.