Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services – LBO Underwriting Memo ENTRY CAPITALIZATION (Close FY2025) Item Calculation Amount Purchase Price 12.0x × $120M $1,440M Transaction Fees 2.0% × $1,440M $28.8M Total Uses $1,468.8M Sources Multiple Amount Term Loan 4.0x × $120M $480.0M Mezzanine 1.5x × $120M $180.0M Equity Plug $808.8M Total Sources…Read the full answer
Year-by-year table: Year Revenue EBITDA Cash Interest (TL) Cash Interest (Mezz) Cash Taxes Capex ΔNWC Free Cash Flow Ending Debt (TL + Mezz) 2026 $972m $136m $36m $18m $25.5m $29.2m $4.86m $60.44m $528.14m 2027 $1,038m $156m $36m $18m $30m $31.1m $5.19m $63.81m $475.75m 2028 $1,105m $177m $36m $18m $35.25m $33.2m…Read the full answer