Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Financial Projections (FY2026–FY2030) Initial Setup (End of FY2025): EV: $120m * 12.0x = $1,440m Fees: $1,440m * 2.0% = $28.8m Term Loan (4.0x): $480m Mezzanine (1.5x): $180m Equity: $1,440m + $28.8m - $480m - $180m = $808.8m Metric ($m) FY2026 FY2027 FY2028 FY2029 FY2030 Revenue 972.0 1,040.0 1,102.4 1,157.5 1,215.4…Read the full answer
Here is the completed LBO underwriting analysis for HarborTech Services (HTS). 1. Transaction Overview & Sources / Uses Entry Enterprise Value (EV): $120.0M EBITDA × 12.0x = $1,440.0M Transaction Fees: 2.0% × $1,440.0M = $28.8M Total Uses: $1,440.0M + $28.8M = $1,468.8M Term Loan (4.0x): $480.0M (9.0% cash interest…Read the full answer