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
Below is a concise, math-forward underwriting package for HarborTech Services (HTS) LBO. Simplified 5-year cash flow (FY2026–FY30) Key inputs Entry EV = 12.0× FY25 EBITDA = 12.0×120 = $1,440m Transaction fees (2% of EV) = $28.8m → funded 100% by equity at close Starting cash = $0 Total leverage at close = 5.5× EBITDA =…Read the full answer