Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
I'll build this LBO model. Let me run a panel analysis to cross-check the calculations before presenting.# HarborTech Services (HTS) — 5-Year LBO Underwriting Modeling Conventions Cash/debt-free deal at close (end-FY2025); model runs FY2026–FY2030. Term Loan interest = 9.0% on beginning-of-year balance.Read the full answer
Year-by-Year Financial Projection (FY2026–FY2030) Assumptions: Revenue Growth Rates: FY2026: 8%, FY2027: 7%, FY2028: 6%, FY2029: 5%, FY2030: 5% EBITDA Margins: FY2026: 14%, FY2027: 15%, FY2028: 16%, FY2029: 16.5%, FY2030: 17% Capex: 3% of revenue ΔNWC: 0.5% of incremental revenue Cash Tax Rate: 25% on max(0, EBITDA…Read the full answer