Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services (HTS) — 5-Year LBO Entry & Sources/Uses Item $m FY25 EBITDA 120.0 Entry EV (12.0x) 1,440.0 Transaction fees (2%) 28.8 Total uses 1,468.8 Term Loan (4.0x) 480.0 Mezz (1.5x) 180.0 Equity (plug) 808.8 Equity = (1,440 − 660) + 28.8 = $808.8m Year-by-Year Model ($m) Assumptions: TL 9% cash + 1% mandatory…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