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 (HTS) – LBO Underwriting Memorandum ENTRY & SOURCES/USES Entry Enterprise Value FY2025 EBITDA: $120m Purchase multiple: 12.0x Enterprise Value: $1,440m Transaction Fees 2.0% × $1,440m = $28.8m (funded by equity) Total Sources Required: $1,440m + $28.8m = $1,468.8m Debt at Close Tranche Multiple…Read the full answer