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
Transaction Setup & Sources/Uses (FY2025 Close) Entry Metrics: FY2025 EBITDA: $120m Purchase Price (EV): $120m × 12.0x = $1,440m Transaction Fees: $1,440m × 2.0% = $28.8m Total Uses: $1,468.8m Sources of Capital: Term Loan (4.0x): $120m × 4.0 = $480.0m Interest: 9.0% Cash + 1.0% Amortization Mezzanine (1.5x): $120m ×…Read the full answer