Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
LBO Model (FY2026–FY2030) Entry Calculations (End of FY2025): Enterprise Value (EV): $120m × 12.0x = $1,440.0m Transaction Fees: $1,440m × 2% = $28.8m Term Loan: $120m × 4.0x = $480.0m Mezzanine: $120m × 1.5x = $180.0m Sponsor Equity: $1,440m - ($480m + $180m) + $28.8m = $808.8m Year-by-Year Table ($ millions): Item…Read the full answer
Year-by-Year Model (FY2026–FY2030) Metric FY2026 FY2027 FY2028 FY2029 FY2030 Revenue $972m $1,040m $1,102m $1,158m $1,215m EBITDA $136m $156m $176m $191m $207m Cash Interest (Term) $43.2m $41.1m $37.6m $33.4m $28.2m Cash Interest (Mezz) $21.6m $21.6m $21.6m $21.6m $21.6m Cash Taxes (25%) $17.8m $23.3m $29.3m $34.7m…Read the full answer