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 SOURCES & USES Uses: Item Amount Enterprise Value (12.0x × $120m) $1,440.0m Transaction Fees (2.0% × $1,440m) $28.8m Total Uses $1,468.8m Sources: Item Multiple Amount Term Loan (4.0x) 4.0x $480.0m Mezzanine (1.5x) 1.5x $180.0m Total Debt 5.5x $660.0m Equity $808.8m Total…Read the full answer
Year-by-Year Financial Projection (FY2026–FY2030) Assumptions: Revenue Growth Rates: FY2026: 8%, FY2027: 7%, FY2028: 6%, FY2029: 5%, FY2030: 5% EBITDA Margins: FY2026: 14%, FY2027: 15%, FY2028: 16%, FY2029: 16.5%, FY2030: 17% Capex: 3% of revenue ΔNWC: 0.5% of incremental revenue Cash Tax Rate: 25% on max(0, EBITDA…Read the full answer