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
1) Simplified Year-by-Year Model (FY2026–FY2030) Entry Metrics (FY2025) Revenue: $900M EBITDA: $120M EBITDA Margin: 13.3% Purchase Price = 12.0 × $120M = $1,440M Transaction Fees = 2.0% × $1,440M = $28.8M Total Uses = $1,440M + $28.8M = $1,468.8M Total Leverage at Close = 5.5x × $120M = $660M Term Loan: 4.0x → $480M…Read the full answer