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
1. Simplified Year-by-Year LBO Model (FY2026–FY2030) Entry Assumptions: Enterprise Value (EV): $120m × 12.0x = $1,440m Transaction Fees: $1,440m × 2.0% = $28.8m Total Debt at Close: $120m × 5.5x = $660m Term Loan: $120m × 4.0x = $480m Mezzanine: $120m × 1.5x = $180m Equity Required: $1,440m (EV) + $28.8m (Fees) − $660m…Read the full answer