Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Entry / Capitalization FY2025 EBITDA = $120.0m Purchase price = 12.0× $120.0m = $1,440.0m Transaction fees = 2.0% × $1,440.0m = $28.8m Term Loan = 4.0× $120.0m = $480.0m Mezzanine = 1.5× $120.0m = $180.0m Total debt = $660.0m Equity check = $1,440.0m + $28.8m − $660.0m = $808.8m Assumption: Term Loan amortization =…Read the full answer
518.51935 New TL: 276.34682 - 86.82747 = 189.51935 Mezz: PIK 194.8377888 * 0.02 = 3.896755776 New Mezz: 194.8377888 + 3.896755776 = 198.734544576 Ending Balances: TL: 189.52 Mezz: 198.73 Total Debt: 388.25 Exit (End of FY2030): Exit EBITDA: 206.6252668 Exit Multiple: 10.5x Exit EV: 206.6252668 * 10.5 = 2,169.5653014…Read the full answer