Filing Flows › Tetra Tech (TTEK) › Takeover & LBO
Is Tetra Tech (TTEK) a takeover target?
A leveraged buyout at today's price plus 30% ($52.30 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 $25.02 a share (−38% against today's $40.23). Historically 2.4% of companies with its figures were bought within a year (0.48× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $52.30 | today's $40.23 plus 30% |
| × shares | 259.8 million | |
| = Equity value | $13.6B | |
| + Debt refinanced | $804M | |
| − Cash | $231M | |
| + Other claims | $505K | preferred stock, minority interests |
| = Enterprise value | $14.2B | 21.1× EBITDA of $669M |
| Fees | $283M | 2% of the price |
| New debt | $3.7B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $10.8B | 75% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $4.9B | $649M | $282M | $266M | $3.4B |
| Year 2 | $4.8B | $640M | $261M | $273M | $3.1B |
| Year 3 | $4.8B | $640M | $240M | $289M | $2.9B |
| Year 4 | $4.9B | $649M | $218M | $305M | $2.5B |
| Year 5 | $5.1B | $669M | $195M | $329M | $2.2B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 16.5× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $11.0B | |
| − Debt left | $2.2B | |
| = Buyer's equity | $8.8B | |
| Money multiple | 0.82× | on $10.8B put in |
| Buyer's yearly return (IRR) | −4.0% |
Price against return
What the buyer makes at other premiums over today's $40.23; the IRR reaches 20% at $25.02 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $44.25 | 0.4% |
| 20% | $48.28 | −1.9% |
| 30% | $52.30 | −4.0% |
| 40% | $56.32 | −5.8% |
| 50% | $60.34 | −7.4% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $5.1B | |
| EBITDA, last 12 months | $669M | 13.2% of revenue |
| Depreciation and amortization | $57.7M | |
| Capital spending | $20.1M | |
| Debt | $804M | |
| Cash | $231M | |
| Share price | $40.23 | 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 -3.0% 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 27% 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, Tetra Tech would cost about $56.32 a share, $14.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $46.14 | $12.0B |
| Median | 40% | $56.32 | $14.6B |
| High end (a quarter paid more) | 60.2% | $64.45 | $16.7B |
The odds, from history
Historically 2.4% of companies with its figures were bought within a year (0.48× the average). Its figures put it in decile 1 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.
Tetra Tech's latest quarter
Tetra Tech, Q3 FY26: revenue $1.3B (-4% year over year), operating margin 12.1%, net earnings $110M, operating cash flow $229M. The chart follows the revenue to costs, profit and cash.
Questions
Is Tetra Tech being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Tetra Tech?
A leveraged buyout at today's price plus 30% ($52.30 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 $25.02 a share (−38% against today's $40.23).
What would a takeover of Tetra Tech 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, Tetra Tech would cost about $56.32 a share, $14.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.