Filing Flows › Tenet Healthcare (THC) › Takeover & LBO
Is Tenet Healthcare (THC) a takeover target?
A leveraged buyout at today's price plus 30% ($372.40 a share) would return about 17% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $335.97 a share (17% against today's $286.46). Historically 3.0% of companies with its figures were bought within a year (0.59× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $372.40 | today's $286.46 plus 30% |
| × shares | 80.6 million | |
| = Equity value | $30.0B | |
| + Debt refinanced | $13.3B | |
| − Cash | $2.7B | |
| + Other claims | $2.0B | preferred stock, minority interests |
| = Enterprise value | $42.6B | 6.8× EBITDA of $6.3B |
| Fees | $852M | 2% of the price |
| New debt | $27.7B | 4.4× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $15.8B | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $23.5B | $6.7B | $2.1B | $2.6B | $25.1B |
| Year 2 | $24.8B | $7.0B | $1.9B | $3.0B | $22.1B |
| Year 3 | $26.0B | $7.4B | $1.7B | $3.4B | $18.7B |
| Year 4 | $26.9B | $7.7B | $1.4B | $3.8B | $14.9B |
| Year 5 | $27.7B | $7.9B | $1.1B | $4.2B | $10.7B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 5.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $44.7B | |
| − Debt left | $10.7B | |
| = Buyer's equity | $34.0B | |
| Money multiple | 2.16× | on $15.8B put in |
| Buyer's yearly return (IRR) | 16.6% |
Price against return
What the buyer makes at other premiums over today's $286.46; the IRR reaches 20% at $335.97 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $315.11 | 22.0% |
| 20% | $343.75 | 19.3% |
| 30% | $372.40 | 16.6% |
| 40% | $401.04 | 14.0% |
| 50% | $429.69 | 11.4% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $22.2B | |
| EBITDA, last 12 months | $6.3B | 28.4% of revenue |
| Depreciation and amortization | $892M | |
| Capital spending | $910M | |
| Debt | $13.3B | |
| Cash | $2.7B | |
| Share price | $286.46 | 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 6.2% 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 24% 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, Tenet Healthcare would cost about $386.72 a share, $31.2B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 22% | $349.48 | $28.2B |
| Median | 35% | $386.72 | $31.2B |
| High end (a quarter paid more) | 45% | $415.37 | $33.5B |
The odds, from history
Historically 3.0% of companies with its figures were bought within a year (0.59× 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.
Tenet Healthcare's latest quarter
Tenet Healthcare, Q3 2026: revenue $5.6B (+6% year over year), operating margin 31.1%, net earnings $1.0B, operating cash flow $1.3B. The chart follows the revenue to costs, profit and cash.
Questions
Is Tenet Healthcare being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Tenet Healthcare?
A leveraged buyout at today's price plus 30% ($372.40 a share) would return about 17% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $335.97 a share (17% against today's $286.46).
What would a takeover of Tenet Healthcare 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, Tenet Healthcare would cost about $386.72 a share, $31.2B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.