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
HarborTech Services — 5-Year LBO Underwriting Entry Summary Amount Multiple Enterprise Value $1,440.0m 12.0x Transaction Fees (2.0%) $28.8m — Total Uses $1,468.8m Sources Amount Multiple Term Loan (9.0% cash, 1.0% amort) $480.0m 4.0x Mezzanine (12.0% cash + 2.0% PIK) $180.0m 1.5x Sponsor Equity $808.8m Total Sources…Read the full answer