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
We need to build a simplified year-by-year table FY2026-FY2030. First, compute initial purchase price: EBITDA FY2025 = $120m. Purchase price = 12.0x EBITDA = 12 * 120 = $1,440m (enterprise value). Transaction fees = 2.0% of EV = 0.02 * 1440 = $28.8m, paid at close from equity. Total leverage at close = 5.5x EBITDA.Read the full answer