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
1) Year-by-Year Projections (FY2026–FY2030) (All figures in $ millions) Metric FY2026 FY2027 FY2028 FY2029 FY2030 Revenue 972 1,040 1,102 1,157 1,215 EBITDA 136 156 176 191 207 Cash Interest (Term Loan) 38.9 37.8 36.5 35.0 33.3 Cash Interest (Mezz) 14.4 14.4 14.4 14.4 14.4 Total Cash Interest 53.3 52.2 50.9 49.4 47.7…Read the full answer