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 Entry Math Item Calc $m Entry EV 12.0x × $120m EBITDA 1,440.0 Transaction fees 2.0% × 1,440.0 28.8 Total Uses EV + fees 1,468.8 Term Loan 4.0x × 120 480.0 Mezzanine 1.5x × 120 180.0 Total Debt 5.5x × 120 660.0 Sponsor Equity Uses – Debt 808.8 Year-by-Year Build…Read the full answer
Year-by-Year Model (FY2026–FY2030) Metric FY2026 FY2027 FY2028 FY2029 FY2030 Revenue $972m $1,040m $1,102m $1,158m $1,215m EBITDA $136m $156m $176m $191m $207m Cash Interest (Term) $43.2m $41.1m $37.6m $33.4m $28.2m Cash Interest (Mezz) $21.6m $21.6m $21.6m $21.6m $21.6m Cash Taxes (25%) $17.8m $23.3m $29.3m $34.7m…Read the full answer