Filing Flows › Victoria's Secret (VSXY) › Takeover & LBO
Is Victoria's Secret (VSXY) a takeover target?
A leveraged buyout at today's price plus 30% ($139.70 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $86.90 a share (−19% against today's $107.46). Historically 1.8% of companies with its figures were bought within a year (0.35× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $139.70 | today's $107.46 plus 30% |
| × shares | 84.0 million | |
| = Equity value | $11.7B | |
| + Debt refinanced | $975M | |
| − Cash | $522M | |
| + Other claims | $61.0M | preferred stock, minority interests |
| = Enterprise value | $12.2B | 16.1× EBITDA of $761M |
| Fees | $245M | 2% of the price |
| New debt | $4.2B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $8.3B | 66% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $7.5B | $822M | $320M | $146M | $4.0B |
| Year 2 | $8.0B | $877M | $309M | $188M | $3.9B |
| Year 3 | $8.4B | $926M | $295M | $229M | $3.6B |
| Year 4 | $8.8B | $965M | $277M | $270M | $3.4B |
| Year 5 | $9.0B | $994M | $256M | $309M | $3.0B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 12.5× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $12.5B | |
| − Debt left | $3.0B | |
| = Buyer's equity | $9.4B | |
| Money multiple | 1.13× | on $8.3B put in |
| Buyer's yearly return (IRR) | 2.5% |
Price against return
What the buyer makes at other premiums over today's $107.46; the IRR reaches 20% at $86.90 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $118.21 | 7.8% |
| 20% | $128.95 | 5.0% |
| 30% | $139.70 | 2.5% |
| 40% | $150.44 | 0.4% |
| 50% | $161.19 | −1.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $6.9B | |
| EBITDA, last 12 months | $761M | 11.0% of revenue |
| Depreciation and amortization | $218M | |
| Capital spending | $204M | |
| Debt | $975M | |
| Cash | $522M | |
| Share price | $107.46 | 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 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 on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Victoria's Secret would cost about $142.38 a share, $12.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $128.95 | $10.8B |
| Median | 32.5% | $142.38 | $12.0B |
| High end (a quarter paid more) | 51.8% | $163.12 | $13.7B |
The odds, from history
Historically 1.8% of companies with its figures were bought within a year (0.35× 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.
Victoria's Secret's latest quarter
Victoria's Secret, Q2 FY27: revenue $1.6B (+10% year over year), operating margin 16.0%, net earnings $183M, operating cash flow $402M. The chart follows the revenue to costs, profit and cash.
Questions
Is Victoria's Secret being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Victoria's Secret?
A leveraged buyout at today's price plus 30% ($139.70 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $86.90 a share (−19% against today's $107.46).
What would a takeover of Victoria's Secret cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Victoria's Secret would cost about $142.38 a share, $12.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.