Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services (HTS) — LBO Underwriting Memorandum To: Private Equity Investment Committee From: Underwriting Team Date: October 24, 2023 Subject: 5-Year LBO Analysis and Underwriting of HarborTech Services (HTS) Executive Summary & Capital Structure HarborTech Services (HTS) represents a highly defensive…Read the full answer
HarborTech Services — simplified LBO ($m) Entry: Enterprise value = 12.0 × $120 = $1,440. Fees are $28.8; opening debt is a $480 term loan plus $180 mezzanine loan. Initial equity = $1,440 + $28.8 − $660 = $808.8. Interest is calculated on beginning-of-year balances.Read the full answer