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 (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