Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services (HTS) – LBO Underwriting Analysis SECTION 0: ENTRY CAPITALIZATION Enterprise Value at Entry: EV = 12.0x × $120m = $1,440m Transaction Fees: 2.0% × $1,440m = $28.8m (funded by equity) Debt at Close: Tranche Multiple Amount Term Loan 4.0x × $120m $480m Mezzanine 1.5x × $120m $180m Total Debt 5.5x…Read the full answer
518.51935 New TL: 276.34682 - 86.82747 = 189.51935 Mezz: PIK 194.8377888 * 0.02 = 3.896755776 New Mezz: 194.8377888 + 3.896755776 = 198.734544576 Ending Balances: TL: 189.52 Mezz: 198.73 Total Debt: 388.25 Exit (End of FY2030): Exit EBITDA: 206.6252668 Exit Multiple: 10.5x Exit EV: 206.6252668 * 10.5 = 2,169.5653014…Read the full answer