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
Year-by-Year Table (FY2026–FY2030) Year Revenue EBITDA Cash Interest Cash Taxes Capex ΔNWC FCF Ending Debt 2026 $972m $136m $36m ($32m TL, $4m Mezz) $2.8m $29m $4.9m $63m $1,050m ($720m TL, $330m Mezz) 2027 $1,038m $155m $37m ($33m TL, $4m Mezz) $6.3m $31m $5.2m $76m $974m ($654m TL, $320m Mezz) 2028 $1,103m $176m $38m…Read the full answer