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
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