Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
YEAR-BY-YEAR OPERATING MODEL Entry Calculations: Enterprise Value = 12.0x × $120m = $1,440m Transaction Fees = 2.0% × $1,440m = $28.8m Term Loan = 4.0x × $120m = $480m Mezzanine = 1.5x × $120m = $180m Total Debt = $660m Equity = $1,440m - $660m + $28.8m = $808.8m Operating Model (FY2026-2030): ($m) FY2026 FY2027 FY2028…Read the full answer
HTS LBO Model Year-By-Year Projections Year Revenue EBITDA Cash Interest (TL) Cash Interest (Mezz) Cash Taxes Capex ΔNWC Free Cash Flow TL Balance Mezz Balance 2025 $900.00m $120.00m $43.20m $21.60m $0.00m $27.00m $0.00m -$28.80m $480.00m $198.00m 2026 $972.00m $136.08m $43.20m $21.60m $12.78m $29.16m $3.60m $25.74m…Read the full answer