Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services LBO Underwriting Year-by-Year Financial Model (FY2026-2030) Metric ($M) FY2026 FY2027 FY2028 FY2029 FY2030 Revenue $972.0 $1,040.0 $1,102.4 $1,157.6 $1,215.5 EBITDA $136.1 $156.0 $176.4 $191.0 $206.6 Cash Interest - Term Loan $43.2 $41.0 $37.6 $32.8 $26.8 Cash Interest - Mezzanine $21.6 $22.0 $22.5…Read the full answer
Entry & Sources & Uses FY2025 EBITDA: $120m Purchase Price (EV): 12.0x × $120m = $1,440m Transaction Fees: 2.0% × $1,440m = $28.8m Total Uses: $1,440m + $28.8m = $1,468.8m Total Leverage: 5.5x × $120m = $660m Term Loan: 4.0x × $120m = $480m (9.0% cash interest, 1.0% mandatory amortization = $4.8m/yr) Mezzanine: 1.5x ×…Read the full answer