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 $4.8m per year. Mezz PIK accrues to principal. All FCF after mandatory debt service sweeps to the TL.Read the full answer
1. Simplified Year-by-Year Table (FY2026–FY2030) Metric FY2026 FY2027 FY2028 FY2029 FY2030 Revenue ($m) $972 $1,040 $1,102 $1,157 $1,215 EBITDA ($m) $136 $156 $177 $191 $207 EBITDA Margin 14.0% 15.0% 16.0% 16.5% 17.0% Cash Interest ($m) - Term Loan (9.0%) $48.6 $48.1 $47.6 $47.0 $46.4 - Mezzanine (12.0%) $21.6 $21.6…Read the full answer