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: Year Revenue EBITDA Cash Interest (TL) Cash Interest (Mezz) Cash Taxes Capex ΔNWC Free Cash Flow Ending Debt (TL + Mezz) 2026 $972m $136m $36m $18m $25.5m $29.2m $4.86m $60.44m $528.14m 2027 $1,038m $156m $36m $18m $30m $31.1m $5.19m $63.81m $475.75m 2028 $1,105m $177m $36m $18m $35.25m $33.2m…Read the full answer