Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services – 5-Year LBO Underwriting Entry Capitalization Item $m FY25 EBITDA 120.0 EV @ 12.0x 1,440.0 Term Loan (4.0x) 480.0 Mezzanine (1.5x) 180.0 Transaction fees (2.0% EV) 28.8 Sponsor equity 808.8 Year-by-Year Operating & Debt Schedule ($m) FY26 FY27 FY28 FY29 FY30 Revenue 972.0 1,040.0 1,102.4 1,157.6…Read the full answer
Year-by-Year Table (FY2026–FY2030) Assumptions: Revenue growth: FY2026: 8% on $900m = $972m; FY2027: 7% on $972m ≈ $1,040m; FY2028: 6% on $1,040m ≈ $1,102m; FY2029: 5% on $1,102m ≈ $1,158m; FY2030: 5% on $1,158m ≈ $1,215m. EBITDA: Revenue × margin (FY2026: 14%; FY2027: 15%; FY2028: 16%; FY2029: 16.5%; FY2030: 17%).Read the full answer