Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services LBO - Underwriting Analysis Here's the simplified LBO analysis based on provided information. 1) Year-by-Year Projections (FY2026-FY2030) - $M Year Revenue EBITDA Cash Interest (TL) Cash Interest (Mezz) Cash Taxes Capex ΔNWC FCF After Debt Service Ending TL Ending Mezz 2026 $972 $138.6 $36.0 $18.9…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