Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Sources & Uses / Entry Setup Enterprise Value (EV): $120m EBITDA × 12.0x = $1,440.0m Transaction Fees: 2.0% × $1,440.0m = $28.8m Total Uses: $1,468.8m Term Loan: 4.0x × $120m = $480.0m (9.0% cash, $4.8m/yr mandatory amort) Mezzanine: 1.5x × $120m = $180.0m (12.0% cash, 2.0% PIK) Total Debt: $660.0m Total Equity…Read the full answer
1) Year-by-Year Financial Projections (FY2026–FY2030) Year Revenue EBITDA Cash Interest Taxes Capex ΔNWC FCF After Debt Service Ending Debt (TL + Mezz) FY2026 $972M $138M $10.8M (TL) + $1.8M (Mezz) = $12.6M $29.3M $29.2M $4.9M $48.3M $495M FY2027 $1,041M $159M $10.8M (TL) + $1.8M (Mezz) = $12.6M $31.8M $31.2M $5.2M…Read the full answer