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
We need to build a simplified year-by-year table FY2026-FY2030. First, compute initial purchase price: EBITDA FY2025 = $120m. Purchase price = 12.0x EBITDA = 12 * 120 = $1,440m (enterprise value). Transaction fees = 2.0% of EV = 0.02 * 1440 = $28.8m, paid at close from equity. Total leverage at close = 5.5x EBITDA.Read the full answer