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
518.51935 New TL: 276.34682 - 86.82747 = 189.51935 Mezz: PIK 194.8377888 * 0.02 = 3.896755776 New Mezz: 194.8377888 + 3.896755776 = 198.734544576 Ending Balances: TL: 189.52 Mezz: 198.73 Total Debt: 388.25 Exit (End of FY2030): Exit EBITDA: 206.6252668 Exit Multiple: 10.5x Exit EV: 206.6252668 * 10.5 = 2,169.5653014…Read the full answer