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
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