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 (HTS) – LBO Underwriting Memorandum ENTRY & SOURCES/USES Entry Enterprise Value FY2025 EBITDA: $120m Purchase multiple: 12.0x Enterprise Value: $1,440m Transaction Fees 2.0% × $1,440m = $28.8m (funded by equity) Total Sources Required: $1,440m + $28.8m = $1,468.8m Debt at Close Tranche Multiple…Read the full answer