Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Assumptions used Term Loan amortization = 1.0% of original $480m = $4.8m/yr Mezz PIK accrues to principal; mezz cash interest calculated on beginning mezz balance including PIK Cash taxes use: 25% x max(0, EBITDA - total cash interest); PIK is not cash-deductible FCF after required debt service is used for optional…Read the full answer
HarborTech Services — LBO Underwrite Sources & Uses $m Uses Enterprise Value (12.0× $120m) 1,440.0 Transaction Fees (2.0%) 28.8 Total Uses 1,468.8 Sources Term Loan (4.0× EBITDA) 480.0 Mezzanine (1.5× EBITDA) 180.0 Total Debt 660.0 44.9% Sponsor Equity 808.8 55.1% Year-by-Year Operating Model (FY2026–FY2030) All…Read the full answer