Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Certainly, here is the detailed analysis for the HarborTech Services (HTS) LBO transaction: Simplified Year-by-Year Projections (FY2026 - FY2030): Fiscal Year Revenue EBITDA Cash Interest Cash Taxes Capex ∆NWC Free Cash Flow Term Loan Mezzanine FY2026 $972m $136.1m $37.8m $24.6m $29.2m $4.9m $39.6m $306.0m $162.0m…Read the full answer
Let's proceed step-by-step. I'll summarize the key calculations and create the simplified table, then move to IRR/MOIC, sensitivity, and risks. Initial Deal Assumptions Recap Entry EBITDA FY2025: $120m Entry EV: 12.0x EBITDA = 12.0 * 120 = $1,440m Transaction fees: 2.0% * $1,440m = $28.8m (paid from equity) Leverage at…Read the full answer