Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Here is the streamlined underwriting model based strictly on the inputs provided. Simplified year-by-year projection (FY2026–FY2030) Key starting items (at close end of FY2025): Enterprise value (EV) = 12.0 × $120m = $1,440m Transaction fees (2.0% of EV) = $28.8m → treated as additional equity paid at close Total…Read the full answer
HarborTech Services – LBO Underwriting Summary Entry Economics EV = 12.0x × $120m = $1,440m; fees = 2% × 1,440 = $28.8m; total uses = $1,468.8m Debt: Term Loan = 4.0x × 120 = $480m (9% cash, 1%/yr amort); Mezz = 1.5x × 120 = $180m (12% cash + 2% PIK) Sponsor equity = 1,468.8 − 660 = $808.8m (~55% of cap) Annual Model…Read the full answer