Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Financial Model (FY2026–FY2030) Transaction Assumptions (Entry): EV: $1,440m ($120m * 12.0x) Fees: $28.8m (2% of EV) Total Uses: $1,468.8m Debt: $660m (5.5x EBITDA) Term Loan: $480m Mezz: $180m Equity: $808.8m ($1,468.8m - $660m) ($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 underwriting analysis for HarborTech Services (HTS). Transaction Summary & Sources & Uses Enterprise Value (EV): $120.0\text{m} \times 12.0\text{x} = \$1,440.0\text{m}$ Transaction Fees: $2.0\% \times \$1,440.0\text{m} = \$28.8\text{m}$ Total Uses: $\$1,440.0\text{m} + \$28.8\text{m} = \$1,468.8\text{m}$…Read the full answer