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 EBITDA Cash Interest (Term Loan) Cash Interest (Mezz) PIK (Mezz) Cash Taxes Capex ΔNWC Free Cash Flow After Debt Service Ending Term Loan Balance Ending Mezzanine Balance 2026 $972m $136.08m $36.00m $13.50m $2.70m $18.42m $29.16m $4.86m $11.14m $344.00m $108.00m 2027…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