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
1. Simplified Year-by-Year LBO Model (FY2026–FY2030) Entry Assumptions: Enterprise Value (EV): $120m × 12.0x = $1,440m Transaction Fees: $1,440m × 2.0% = $28.8m Total Debt at Close: $120m × 5.5x = $660m Term Loan: $120m × 4.0x = $480m Mezzanine: $120m × 1.5x = $180m Equity Required: $1,440m (EV) + $28.8m (Fees) − $660m…Read the full answer