Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
This underwriting analysis is based solely on the provided information for HarborTech Services (HTS). Entry & Transaction Summary (FY2025) Entry Metrics: FY2025 Revenue: $\$900.0 \text{m}$ FY2025 EBITDA: $\$120.0 \text{m}$ Purchase Price (EV): $12.0 \times \$120.0\text{m} = \$1,440.0\text{m}$ Sources & Uses (Debt…Read the full answer
1. Simplified Year-by-Year LBO Model (FY2026–FY2030) Entry Assumptions: Enterprise Value (EV): $120m × 12.0x = $1,440m Transaction Fees: $1,440m × 2.0% = $28.8m Total Debt at Close: $120m × 5.5x = $660m Term Loan: $120m × 4.0x = $480m Mezzanine: $120m × 1.5x = $180m Equity Required: $1,440m (EV) + $28.8m (Fees) − $660m…Read the full answer