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
HarborTech Services (HTS) LBO Underwriting Memo Entry & Sources/Uses Summary Entry Valuation (FY2025) Revenue: $900m EBITDA: $120m Purchase Multiple: 12.0x Enterprise Value: $1,440m Transaction Fees (2.0%): $28.8m Total Uses: $1,468.8m Sources & Uses at Close Source Amount % Use Amount Term Loan (4.0x) $480.0m 32.7%…Read the full answer