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
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