Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services (HTS) – LBO Underwriting SOURCES & USES AT CLOSE (FY2025) Item Amount USES Enterprise Value (12.0x × $120m EBITDA) $1,440m Transaction Fees (2.0% of EV) $28.8m Total Uses $1,468.8m SOURCES Term Loan (4.0x × $120m) $480m Mezzanine (1.5x × $120m) $180m Equity (plug) $808.8m Total Sources $1,468.8m…Read the full answer
1. Year-by-Year Financial Projections (FY2026–FY2030) Year Revenue ($m) EBITDA ($m) EBITDA Margin Cash Interest ($m) Cash Taxes ($m) Capex ($m) ΔNWC ($m) Free Cash Flow ($m) Term Loan Ending ($m) Mezz Ending ($m) 2026 972.0 136.1 14.0% 57.6 19.6 29.2 4.4 25.3 468.0 198.0 2027 1,039.4 155.9 15.0% 55.3 25.2 31.2 4.6 39.8…Read the full answer