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 = $808.8M Year-by-Year Operating Model (FY2026-FY2030)…Read the full answer
1 – Year‑by‑Year Operating / Debt Table (FY2026‑FY2030) FY Rev ($m) EBITDA ($m) Cash interest – TL ($m) Cash interest – Mezz ($m) Total cash interest ($m) Cash tax 25 % of (EBITDA‑interest) ($m) Capex ($m) ΔNWC ($m) Cash after all charges ($m) Required TL amort ($m) Optional TL pay‑down ($m) Ending TL ($m) Ending Mezz…Read the full answer