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 Table (FY2026–FY2030) Assumptions: Revenue growth: FY2026: 8% on $900m = $972m; FY2027: 7% on $972m ≈ $1,040m; FY2028: 6% on $1,040m ≈ $1,102m; FY2029: 5% on $1,102m ≈ $1,158m; FY2030: 5% on $1,158m ≈ $1,215m. EBITDA: Revenue × margin (FY2026: 14%; FY2027: 15%; FY2028: 16%; FY2029: 16.5%; FY2030: 17%).Read the full answer