Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Year-by-Year Financial Table (FY2026–FY2030) Year Revenue (m) EBITDA (m) TL Cash Int (m) Mezz Cash Int (m) Total Cash Int (m) Cash Taxes (m) Capex (m) ΔNWC (m) FCF After Debt Service (m) Ending TL (m) Ending Mezz (m) 2026 972.00 136.08 43.20 21.60 64.80 17.82 29.16 0.36 19.14 456.06 183.60 2027 1,040.04 156.01 41.05…Read the full answer
HarborTech Services – LBO Underwriting Summary Entry Economics EV = 12.0x × $120m = $1,440m; fees = 2% × 1,440 = $28.8m; total uses = $1,468.8m Debt: Term Loan = 4.0x × 120 = $480m (9% cash, 1%/yr amort); Mezz = 1.5x × 120 = $180m (12% cash + 2% PIK) Sponsor equity = 1,468.8 − 660 = $808.8m (~55% of cap) Annual Model…Read the full answer