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
1) Simplified Year‑by‑Year Table (FY2026‑FY2030) All figures in $ millions. Starting balances at close FY2025: Term Loan = 4.0 × EBITDA = 4.0 × 120 = 480 m; Mezz = 1.5 × EBITDA = 180 m. Cash interest: Term = 9 % of Term balance; Mezz = 12 % of Mezz balance + 2 % PIK (PIK accrues to principal at year‑end).Read the full answer