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
Transaction Setup & Sources/Uses (FY2025 Close) Entry Metrics: FY2025 EBITDA: $120m Purchase Price (EV): $120m × 12.0x = $1,440m Transaction Fees: $1,440m × 2.0% = $28.8m Total Uses: $1,468.8m Sources of Capital: Term Loan (4.0x): $120m × 4.0 = $480.0m Interest: 9.0% Cash + 1.0% Amortization Mezzanine (1.5x): $120m ×…Read the full answer