Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services (HTS) – 5-Year LBO Model Projected Financials & Debt Schedule (US$ millions, fiscal years ending December) FY2026 FY2027 FY2028 FY2029 FY2030 Revenue 972.0 1,040.0 1,102.4 1,157.6 1,215.4 EBITDA 136.1 156.0 176.4 191.0 206.6 Margin 14.0% 15.0% 16.0% 16.5% 17.0% Cash Interest Term Loan (9% cash) 43.2…Read the full answer
HarborTech Services (HTS) – 5-Year LBO Analysis Sources & Uses at Close (FY2025) Sources $m Uses $m Term Loan (4.0x) 480.0 Purchase price (12.0x × $120) 1,440.0 Mezzanine (1.5x) 180.0 Transaction fees (2.0% × EV) 28.8 Sponsor Equity (plug) 808.8 Total 1,468.8 Total 1,468.8 Initial Mezz: $180m; Initial TL: $480m.Read the full answer