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 and LBO model for HarborTech Services (HTS). FY2026–FY2030 LBO Model Table ($ millions) Metric FY2026 FY2027 FY2028 FY2029 FY2030 Revenue $972.00 $1,040.04 $1,102.44 $1,157.56 $1,215.44 YoY Growth % 8.0% 7.0% 6.0% 5.0% 5.0% EBITDA $136.08 $156.01 $176.39 $191.00 $206.62 EBITDA Margin %…Read the full answer
HarborTech Services - 5-Yr LBO - Base Case Entry - close end FY2025 FY25 EBITDA $120m EV = 12.0x * 120 = $1,440m Fees = 2.0% * 1,440 = $28.8m Uses = 1,440 + 28.8 = $1,468.8m Sources: Term Loan 4.0x = $480m, 9.0% cash, 1% amort = $4.8m/yr mandatory Mezz 1.5x = $180m, 12.0% cash + 2.0% PIK to principal Total debt $660m =…Read the full answer