Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Year-by-Year Table (FY2026–FY2030) Year Revenue ($m) EBITDA ($m) Cash Interest - Term Loan ($m) Cash Interest - Mezzanine ($m) Cash Taxes ($m) Capex ($m) ΔNWC ($m) Free Cash Flow ($m) Ending Term Loan ($m) Ending Mezzanine ($m) 2026 972.0 136.1 43.2 18.0 14.9 29.2 4.8 26.0 468.0 180.0 2027 1040.4 156.1 42.1 21.6 18.4…Read the full answer
HarborTech Services — 5-Year LBO Summary Entry Math EV = 12.0x × $120m = $1,440.0m; Fees (2%) = $28.8m; Total uses = $1,468.8m Debt: TL = 4.0x × 120 = $480.0m; Mezz = 1.5x × 120 = $180.0m; Total = $660.0m (5.5x) Sponsor equity = $808.8m Base Case Projection ($m) FY26 FY27 FY28 FY29 FY30 Revenue 972.0 1,039.7 1,102.1…Read the full answer