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
1) Simplified LBO Model (FY2026–FY2030, $m) Entry (end FY25): EBITDA $120m, EV = 12.0x = $1,440m. Fees 2% = $28.8m. Debt: TL $480m (9% cash, 1% amort), Mezz $180m (12% cash + 2% PIK). Equity = 1,440+28.8–660 = $808.8m. FY Revenue EBITDA TL Int Mezz Int Cash Tax* Capex ΔNWC FCF after req. svc (opt.Read the full answer