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
We need to build a simplified year-by-year table FY2026-FY2030. First, compute initial purchase price: EBITDA FY2025 = $120m. Purchase price = 12.0x EBITDA = 12 * 120 = $1,440m (enterprise value). Transaction fees = 2.0% of EV = 0.02 * 1440 = $28.8m, paid at close from equity. Total leverage at close = 5.5x EBITDA.Read the full answer