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 Projections (FY2026–FY2030) Initial Setup (End of FY2025): EV: $120m * 12.0x = $1,440m Fees: $1,440m * 2.0% = $28.8m Term Loan (4.0x): $480m Mezzanine (1.5x): $180m Equity: $1,440m + $28.8m - $480m - $180m = $808.8m Metric ($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