Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services LBO Analysis Sources & Uses at Entry (FY2025) Enterprise Value: $900M × 12.0x = $1,440M Transaction Fees: $1,440M × 2.0% = $28.8M Sources: Term Loan: $900M × 4.0x = $480M Mezzanine: $900M × 1.5x = $180M Equity: $1,440M + $28.8M - $480M - $180M = $808.8M Year-by-Year Operating Model (FY2026-FY2030)…Read the full answer
HTS LBO Model Year-By-Year Projections Year Revenue EBITDA Cash Interest (TL) Cash Interest (Mezz) Cash Taxes Capex ΔNWC Free Cash Flow TL Balance Mezz Balance 2025 $900.00m $120.00m $43.20m $21.60m $0.00m $27.00m $0.00m -$28.80m $480.00m $198.00m 2026 $972.00m $136.08m $43.20m $21.60m $12.78m $29.16m $3.60m $25.74m…Read the full answer