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
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