Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services (HTS) – 5‑yr LBO (FY2026‑FY2030) All figures are $ m (rounded to two decimals). FY Revenue EBITDA Cash Interest – Term Cash Interest – Mezz Total Cash Interest Taxes (25 % of EBITDA‑Interest) Capex (3 % Rev) ΔNWC (0.5 % of ΔRev) Free‑Cash‑Flow (before amort.) Mandatory Amort.Read the full answer
Financial Projections (FY2026–FY2030) Initial Setup (End of FY2025): EV: $120m * 12.0x = $1,440m Fees: $1,440m * 2.0% = $28.8m Term Loan (4.0x): $480m Mezzanine (1.5x): $180m Equity: $1,440m + $28.8m - $480m - $180m = $808.8m Metric ($m) FY2026 FY2027 FY2028 FY2029 FY2030 Revenue 972.0 1,040.0 1,102.4 1,157.5 1,215.4…Read the full answer