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
518.51935 New TL: 276.34682 - 86.82747 = 189.51935 Mezz: PIK 194.8377888 * 0.02 = 3.896755776 New Mezz: 194.8377888 + 3.896755776 = 198.734544576 Ending Balances: TL: 189.52 Mezz: 198.73 Total Debt: 388.25 Exit (End of FY2030): Exit EBITDA: 206.6252668 Exit Multiple: 10.5x Exit EV: 206.6252668 * 10.5 = 2,169.5653014…Read the full answer