Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
1) Year-by-Year Financial Projections (FY2026–FY2030) Metric FY2026 FY2027 FY2028 FY2029 FY2030 Revenue ($m) 972 1,040 1,102 1,157 1,215 EBITDA ($m) 136 156 176 191 207 EBITDA Margin (%) 14.0% 15.0% 16.0% 16.5% 17.0% Cash Interest ($m) - Term Loan (9.0%) 43.2 43.2 43.2 43.2 43.2 - Mezzanine (12.0%) 18.0 18.0 18.0 18.0…Read the full answer
Five-year operating and debt schedule (FY2026–FY2030) Entry (end-FY2025): EBITDA = $120.0m EV = 12.0x × $120.0m = $1,440.0m Fees = 2.0% × $1,440.0m = $28.8m Total uses = $1,440.0m + $28.8m = $1,468.8m Debt at close (5.5× FY2025 EBITDA = $660.0m): Term Loan (TL) = 4.0× = $480.0m Mezz = 1.5× = $180.0m Equity at close =…Read the full answer