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
Simplified Year-by-Year Cash Flow Table (FY2026–FY2030) Year Revenue EBITDA Cash Interest (Term + Mezz) Cash Taxes Capex ΔNWC FCF After Required Payments Term Loan Balance Mezz Balance 2026 $972.0M $136.1M $64.8M $17.8M $29.2M $0.4M $19.1M $456.1M $183.6M 2027 $1,040.0M $156.0M $63.1M $23.2M $31.2M $0.3M $33.4M $417.9M…Read the full answer