Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
I'll help you analyze this LBO opportunity step by step. First, let's calculate key metrics year by year: Entry Values (FY2025): EV = $120m × 12.0x = $1,440m Transaction fees = $28.8m (2% of EV) Total debt = $660m (5.5x EBITDA) Term Loan = $480m (4.0x) Mezzanine = $180m (1.5x) Equity = $808.8m ($1,440m + $28.8m…Read the full answer
HarborTech Services (HTS) — LBO Underwriting Memorandum To: Private Equity Investment Committee From: Underwriting Team Date: October 24, 2023 Subject: 5-Year LBO Analysis and Underwriting of HarborTech Services (HTS) Executive Summary & Capital Structure HarborTech Services (HTS) represents a highly defensive…Read the full answer