Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Here is the underwriting analysis for HarborTech Services (HTS) based on the provided parameters. Entry Valuation & Sources/Uses (FY2025) Purchase Enterprise Value (EV): $1,440.0m (12.0x $120m EBITDA) Transaction Fees: $28.8m (2.0% of EV) Total Uses: $1,468.8m Term Loan (4.0x): $480.0m Mezzanine Debt (1.5x): $180.0m…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