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
HarborTech Services (HTS) – LBO Underwriting Memorandum ENTRY & SOURCES/USES Entry Enterprise Value FY2025 EBITDA: $120m Purchase multiple: 12.0x Enterprise Value: $1,440m Transaction Fees 2.0% × $1,440m = $28.8m (funded by equity) Total Sources Required: $1,440m + $28.8m = $1,468.8m Debt at Close Tranche Multiple…Read the full answer