Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services — 5-Year LBO Summary Entry Math EV = 12.0x × $120m = $1,440.0m; Fees (2%) = $28.8m; Total uses = $1,468.8m Debt: TL = 4.0x × 120 = $480.0m; Mezz = 1.5x × 120 = $180.0m; Total = $660.0m (5.5x) Sponsor equity = $808.8m Base Case Projection ($m) FY26 FY27 FY28 FY29 FY30 Revenue 972.0 1,039.7 1,102.1…Read the full answer
Year-by-Year Financial Projection (FY2026–FY2030) Assumptions: Revenue Growth Rates: FY2026: 8%, FY2027: 7%, FY2028: 6%, FY2029: 5%, FY2030: 5% EBITDA Margins: FY2026: 14%, FY2027: 15%, FY2028: 16%, FY2029: 16.5%, FY2030: 17% Capex: 3% of revenue ΔNWC: 0.5% of incremental revenue Cash Tax Rate: 25% on max(0, EBITDA…Read the full answer