Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
LBO Model: HarborTech Services (HTS) – Base Case & Sensitivity Year-by-Year Financial Projections (FY2026–FY2030) ($ millions) FY2026 FY2027 FY2028 FY2029 FY2030 Revenue 972.00 1,040.04 1,102.44 1,157.56 1,215.44 EBITDA 136.08 156.01 176.39 191.00 206.63 Less: Cash Interest (64.80) (63.08) (60.08) (55.69) (50.16) –…Read the full answer
Entry & Sources & Uses FY2025 EBITDA: $120m Purchase Price (EV): 12.0x × $120m = $1,440m Transaction Fees: 2.0% × $1,440m = $28.8m Total Uses: $1,440m + $28.8m = $1,468.8m Total Leverage: 5.5x × $120m = $660m Term Loan: 4.0x × $120m = $480m (9.0% cash interest, 1.0% mandatory amortization = $4.8m/yr) Mezzanine: 1.5x ×…Read the full answer