Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Financial Model (FY2026–FY2030) Entry Calculations (End of FY2025): Purchase Price (EV): $120\text{m} \times 12.0\text{x} = \$1,440\text{m}$ Transaction Fees: $1,440\text{m} \times 2\% = \$28.8\text{m}$ Total Uses: $\$1,440\text{m} + \$28.8\text{m} = \$1,468.8\text{m}$ Debt (Total 5.5x): $\$120\text{m} \times 5.5 =…Read the full answer
518.51935 New TL: 276.34682 - 86.82747 = 189.51935 Mezz: PIK 194.8377888 * 0.02 = 3.896755776 New Mezz: 194.8377888 + 3.896755776 = 198.734544576 Ending Balances: TL: 189.52 Mezz: 198.73 Total Debt: 388.25 Exit (End of FY2030): Exit EBITDA: 206.6252668 Exit Multiple: 10.5x Exit EV: 206.6252668 * 10.5 = 2,169.5653014…Read the full answer