Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Year-by-Year LBO Model (FY2026–FY2030) Metric FY2026 FY2027 FY2028 FY2029 FY2030 Revenue $972m $1,040m $1,102m $1,162m $1,218m EBITDA $136m $156m $177m $192m $207m Cash Interest (Term Loan) $43m $39m $34m $30m $26m Cash Interest (Mezz) $18m $16m $14m $12m $11m Cash Taxes $15m $22m $29m $35m $41m Capex $29m $31m $33m…Read the full answer
1) Simplified LBO table (FY2026–2030, $m, rounded) Entry (end-FY2025): Rev $900m, EBITDA $120m, EV $1,440m (12.0x), trans fees $28.8m (2% of EV), total uses $1,468.8m. Debt $660m (TL $480m at 4.0x / 9% cash int / 1% annual amort of orig principal; Mezz $180m at 1.5x / 12% cash + 2% PIK). Equity $808.8m.Read the full answer