Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
1) Year‑by‑year model (FY2026–FY2030) Item FY2026 FY2027 FY2028 FY2029 FY2030 Revenue ($m) 972.0 1,038.0 1,100.3 1,155.3 1,213.1 EBITDA ($m) 136.1 155.7 176.1 190.6 206.2 Cash interest – Term Loan (9%) 43.2 41.0 37.6 32.8 26.8 – Mezzanine (12% cash) 21.6 22.0 22.5 22.9 23.4 Total cash interest 64.8 63.1 60.1 55.7 50.2…Read the full answer
HarborTech Services - 5-Yr LBO - Base Case Entry - close end FY2025 FY25 EBITDA $120m EV = 12.0x * 120 = $1,440m Fees = 2.0% * 1,440 = $28.8m Uses = 1,440 + 28.8 = $1,468.8m Sources: Term Loan 4.0x = $480m, 9.0% cash, 1% amort = $4.8m/yr mandatory Mezz 1.5x = $180m, 12.0% cash + 2.0% PIK to principal Total debt $660m =…Read the full answer