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
Entry & Sources & Uses FY2025 EBITDA: $120m Purchase Price (EV): 12.0x × $120m = $1,440m Transaction Fees: 2.0% × $1,440m = $28.8m Total Uses: $1,440m + $28.8m = $1,468.8m Total Leverage: 5.5x × $120m = $660m Term Loan: 4.0x × $120m = $480m (9.0% cash interest, 1.0% mandatory amortization = $4.8m/yr) Mezzanine: 1.5x ×…Read the full answer