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
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