Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services (HTS) — LBO Underwriting Memo Entry Summary (FY2025) Item Value Entry EBITDA $120.0m Entry EV (12.0x) $1,440.0m Transaction fees (2.0% × EV) $28.8m Term Loan (4.0x) $480.0m Mezzanine (1.5x) $180.0m Total Debt $660.0m Equity Check (EV + Fees − Debt) $808.8m Operating Model & Debt Schedule…Read the full answer
Year-by-year table: Year Revenue EBITDA Cash Interest (TL) Cash Interest (Mezz) Cash Taxes Capex ΔNWC Free Cash Flow Ending Debt (TL + Mezz) 2026 $972m $136m $36m $18m $25.5m $29.2m $4.86m $60.44m $528.14m 2027 $1,038m $156m $36m $18m $30m $31.1m $5.19m $63.81m $475.75m 2028 $1,105m $177m $36m $18m $35.25m $33.2m…Read the full answer