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
Simplified LBO Model (FY2026–FY2030) Entry Metrics: Purchase Price: $1,440m ($120m * 12.0x) Transaction Fees: $28.8m ($1,440m * 2.0%) Equity Contribution: $312.8m (Total Price + Fees - Total Leverage: $1,440m + $28.8m - $120m*5.5x) Year-by-Year Table Year Revenue ($m) EBITDA ($m) Cash Interest ($m) Taxes ($m) Capex…Read the full answer