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
Below is a simplified 5-year LBO model for HarborTech Services (HTS) using only the assumptions provided. Entry, sources & uses Purchase price FY2025 EBITDA = $120.0m Entry multiple = 12.0x Enterprise Value = 12.0 × 120.0 = $1,440.0m Fees Transaction fees = 2.0% of EV = 2.0% × 1,440.0 = $28.8m Uses Purchase of…Read the full answer