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 $4.8m per year. Mezz PIK accrues to principal. All FCF after mandatory debt service sweeps to the TL.Read the full answer
Entry & Capital Structure (End FY2025) Item Calculation Value ($M) Enterprise Value 12.0x × $120M EBITDA 1,440.0 Term Loan 4.0x × $120M 480.0 Mezzanine 1.5x × $120M 180.0 Transaction Fees 2.0% × EV (equity-funded) 28.8 Equity Invested EV – Debt + Fees 808.8 LBO Model Summary (FY2026–FY2030) All values in $M.Read the full answer