Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Year-by-Year Financial Projections (FY2026–FY2030) All figures in $ millions. Year Revenue EBITDA Cash Interest (Term Loan / Mezz / Total) Cash Taxes Capex ΔNWC FCF after Debt Service* Ending Term Loan Ending Mezzanine 2026 972.00 136.08 43.20 / 21.60 / 64.80 17.82 29.16 0.36 40.74 434.46 183.60 2027 1,040.04 156.01…Read the full answer
HarborTech Services – LBO Underwriting Summary Entry Economics EV = 12.0x × $120m = $1,440m; fees = 2% × 1,440 = $28.8m; total uses = $1,468.8m Debt: Term Loan = 4.0x × 120 = $480m (9% cash, 1%/yr amort); Mezz = 1.5x × 120 = $180m (12% cash + 2% PIK) Sponsor equity = 1,468.8 − 660 = $808.8m (~55% of cap) Annual Model…Read the full answer