Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
1. Simplified Year-by-Year Table (FY2026–FY2030) Metric FY2026 FY2027 FY2028 FY2029 FY2030 Revenue ($m) $972 $1,040 $1,102 $1,157 $1,215 EBITDA ($m) $136 $156 $177 $191 $207 EBITDA Margin 14.0% 15.0% 16.0% 16.5% 17.0% Cash Interest ($m) - Term Loan (9.0%) $48.6 $48.1 $47.6 $47.0 $46.4 - Mezzanine (12.0%) $21.6 $21.6…Read the full answer
Below is a clean LBO build using your assumptions only ($ in millions). Entry math (end FY2025) EV = \(12.0 \times 120 = 1,440.0\) Fees = \(2.0\% \times 1,440.0 = 28.8\) Total uses = \(1,468.8\) Debt at close (5.5x EBITDA): Term Loan = \(4.0 \times 120 = 480.0\) Mezz = \(1.5 \times 120 = 180.0\) Total debt = 660.0…Read the full answer