Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services – LBO Underwriting Summary Entry Economics EV = 12.0x × $120m = $1,440m; fees = 2% × 1,440 = $28.8m; total uses = $1,468.8m Debt: Term Loan = 4.0x × 120 = $480m (9% cash, 1%/yr amort); Mezz = 1.5x × 120 = $180m (12% cash + 2% PIK) Sponsor equity = 1,468.8 − 660 = $808.8m (~55% of cap) Annual Model…Read the full answer
Simplified LBO Model (FY2026–FY2030, $m) Year Revenue EBITDA TL Cash Int. Mezz Cash Int. Cash Taxes Capex ΔNWC FCF After Debt Service* End TL End Mezz End Total Debt FY26 972.0 136.1 43.2 21.6 17.8 29.2 0.4 19.1 456.1 183.6 639.7 FY27 1,040.0 156.0 41.1 22.0 23.2 31.2 0.3 33.6 417.9 187.3 605.2 FY28 1,102.4 176.4 37.6…Read the full answer