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
Year-by-Year Projection (FY2026–FY2030) Entry Metrics: EV: $1,440m (12.0x FY2025 EBITDA $120m) Debt: $660m (Term $480m + Mezz $180m) Equity Check: $808.8m [ = (EV − Debt) + Fees = ($1,440 − $660) + (2.0% × $1,440) ] Initial Investment (t=0): $808.8m ($m) FY2026 FY2027 FY2028 FY2029 FY2030 Revenue 972.0 1,040.0 1,102.4…Read the full answer