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
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