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
1) Year-by-Year Financial Projections (FY2026–FY2030) Year Revenue EBITDA Cash Interest Taxes Capex ΔNWC FCF After Debt Service Ending Debt (TL + Mezz) FY2026 $972M $138M $10.8M (TL) + $1.8M (Mezz) = $12.6M $29.3M $29.2M $4.9M $48.3M $495M FY2027 $1,041M $159M $10.8M (TL) + $1.8M (Mezz) = $12.6M $31.8M $31.2M $5.2M…Read the full answer