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
Financial Model (FY2026–FY2030) Transaction Assumptions (Entry): EV: $1,440m ($120m * 12.0x) Fees: $28.8m (2% of EV) Total Uses: $1,468.8m Debt: $660m (5.5x EBITDA) Term Loan: $480m Mezz: $180m Equity: $808.8m ($1,468.8m - $660m) ($m) FY2026 FY2027 FY2028 FY2029 FY2030 Revenue 972.0 1,040.0 1,102.4 1,157.5 1,215.4…Read the full answer