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
HarborTech Services (HTS) – LBO Underwriting Memo Entry & Capital Structure Item Amount FY2025 EBITDA $120.0m Entry Multiple 12.0x Enterprise Value $1,440.0m Transaction Fees (2.0% of EV) $28.8m Total Uses $1,468.8m Term Loan (4.0x, 9.0% cash, 1.0% amort) $480.0m Mezzanine (1.5x, 12.0% cash + 2.0% PIK) $180.0m Sponsor…Read the full answer