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
Key assumptions Entry closes at end of FY2025; exit at end of FY2030. Interest is calculated on beginning-of-year debt balances. Term Loan amortization = 1.0% of original Term Loan principal = $4.8m/year. Mezz PIK = 2.0% of beginning-of-year Mezz balance, added to principal annually.Read the full answer