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 (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