Filing Flows › Transcat (TRNS) › Takeover & LBO
Is Transcat (TRNS) a takeover target?
A leveraged buyout at today's price plus 30% ($104.45 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 $52.56 a share (−35% against today's $80.35). Historically 6.2% of companies with its figures were bought within a year (1.23× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $104.45 | today's $80.35 plus 30% |
| × shares | 9.5 million | |
| = Equity value | $997M | |
| + Debt refinanced | $110M | |
| − Cash | $6.7M | |
| = Enterprise value | $1.1B | 27.1× EBITDA of $40.7M |
| Fees | $22.0M | 2% of the price |
| New debt | $224M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $899M | 80% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $392M | $44.0M | $17.1M | $8.1M | $216M |
| Year 2 | $419M | $46.9M | $16.5M | $10.8M | $205M |
| Year 3 | $442M | $49.5M | $15.7M | $13.6M | $191M |
| Year 4 | $461M | $51.6M | $14.6M | $15.9M | $176M |
| Year 5 | $474M | $53.2M | $13.4M | $18.0M | $157M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 21.4× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $1.1B | |
| − Debt left | $157M | |
| = Buyer's equity | $980M | |
| Money multiple | 1.09× | on $899M put in |
| Buyer's yearly return (IRR) | 1.7% |
Price against return
What the buyer makes at other premiums over today's $80.35; the IRR reaches 20% at $52.56 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $88.39 | 5.7% |
| 20% | $96.42 | 3.6% |
| 30% | $104.45 | 1.7% |
| 40% | $112.49 | 0.1% |
| 50% | $120.52 | −1.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $363M | |
| EBITDA, last 12 months | $40.7M | 11.2% of revenue |
| Depreciation and amortization | $27.5M | |
| Capital spending | $14.7M | |
| Debt | $110M | |
| Cash | $6.7M | |
| Share price | $80.35 | on Oct 16, 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 8.0% 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 30% 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, Transcat would cost about $112.49 a share, $1.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $92.16 | $880M |
| Median | 40% | $112.49 | $1.1B |
| High end (a quarter paid more) | 60.2% | $128.72 | $1.2B |
The odds, from history
Historically 6.2% of companies with its figures were bought within a year (1.23× the average). Its figures put it in decile 8 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.
Transcat's latest quarter
Transcat, Q2 FY27: revenue $97.1M (+18% year over year), operating margin 5.2%, net earnings $2.4M, operating cash flow $10.1M. The chart follows the revenue to costs, profit and cash.
Questions
Is Transcat being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Transcat?
A leveraged buyout at today's price plus 30% ($104.45 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 $52.56 a share (−35% against today's $80.35).
What would a takeover of Transcat 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, Transcat would cost about $112.49 a share, $1.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.