Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services – 5-Year LBO Underwriting Entry Math (close end FY2025, $m) Item Calc Value EV 12.0 × 120 1,440.0 Term Loan (TL) 4.0 × 120 480.0 Mezzanine 1.5 × 120 180.0 Fees (equity-funded) 2.0% × 1,440 28.8 Sponsor equity 1,440 − 660 + 28.8 808.8 Conventions: interest on beginning-of-year balances; TL amort = 1%…Read the full answer
Year-by-Year Table (FY2026–FY2030) Year Revenue EBITDA Cash Interest (Term Loan) Cash Interest (Mezz) PIK (Mezz) Cash Taxes Capex ΔNWC Free Cash Flow After Debt Service Ending Term Loan Balance Ending Mezzanine Balance 2026 $972m $136.08m $36.00m $13.50m $2.70m $18.42m $29.16m $4.86m $11.14m $344.00m $108.00m 2027…Read the full answer