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 Conventions: $m. Interest is charged on beginning-of-year balances, which avoids circularity. Term Loan (TL) amortization is 1% of the original $480m, or $4.8m per year. Mezz PIK accrues to principal. All FCF after mandatory debt service sweeps to the TL.Read the full answer
Of course. Here is the requested LBO underwriting summary for HarborTech Services. 1. Simplified LBO Model (FY2026–FY2030) First, let's establish the entry calculations based on FY2025 figures: FY2025 EBITDA: $120m Entry Enterprise Value (EV): $120m * 12.0x = $1,440m Transaction Fees: $1,440m * 2.0% = $28.8m Total…Read the full answer