Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Okay, here's the simplified LBO model and analysis for HarborTech Services, based solely on the provided information. 1. Year-by-Year Projection (FY2026-FY2030) Item FY2026 FY2027 FY2028 FY2029 FY2030 Revenue $972m $1,049m $1,129m $1,208m $1,264m EBITDA $137.2m $155.9m $178.7m $195.1m $213.1m Cash Interest (Term Loan)…Read the full answer
HarborTech Services – LBO Underwriting Summary Entry Economics EV = 12.0x × $120m = $1,440m; fees = 2% × 1,440 = $28.8m; total uses = $1,468.8m Debt: Term Loan = 4.0x × 120 = $480m (9% cash, 1%/yr amort); Mezz = 1.5x × 120 = $180m (12% cash + 2% PIK) Sponsor equity = 1,468.8 − 660 = $808.8m (~55% of cap) Annual Model…Read the full answer