Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
LBO Model Summary ($m) Entry Calculations: Enterprise Value (EV): $120m * 12.0x = $1,440.0m Transaction Fees: $1,440m * 2.0% = $28.8m Term Loan: $120m * 4.0 = $480.0m Mezzanine: $120m * 1.5 = $180.0m Equity Contribution: ($1,440.0 + $28.8) - ($480.0 + $180.0) = $808.8m Annual Cash Flow & Debt Schedule: FY ($m) 2026E…Read the full answer
1) Year-by-Year Financial Projections (FY2026–FY2030) Year Revenue EBITDA Cash Interest Taxes Capex ΔNWC FCF After Debt Service Ending Debt (TL + Mezz) FY2026 $972M $138M $10.8M (TL) + $1.8M (Mezz) = $12.6M $29.3M $29.2M $4.9M $48.3M $495M FY2027 $1,041M $159M $10.8M (TL) + $1.8M (Mezz) = $12.6M $31.8M $31.2M $5.2M…Read the full answer