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
All figures in $m. Assumptions: 1% Term Loan amortization = 1% of original $480m principal ($4.8m/year); “FCF after debt service” = EBITDA – cash interest – cash taxes – capex – ΔNWC – mandatory amortization; all of that FCF is used for optional Term Loan paydown.Read the full answer