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). Transaction Summary & Sources & Uses Enterprise Value (EV): $120.0\text{m} \times 12.0\text{x} = \$1,440.0\text{m}$ Transaction Fees: $2.0\% \times \$1,440.0\text{m} = \$28.8\text{m}$ Total Uses: $\$1,440.0\text{m} + \$28.8\text{m} = \$1,468.8\text{m}$…Read the full answer
Let's proceed step-by-step. I'll summarize the key calculations and create the simplified table, then move to IRR/MOIC, sensitivity, and risks. Initial Deal Assumptions Recap Entry EBITDA FY2025: $120m Entry EV: 12.0x EBITDA = 12.0 * 120 = $1,440m Transaction fees: 2.0% * $1,440m = $28.8m (paid from equity) Leverage at…Read the full answer