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 = $808.8m (~55% of cap) Annual Model…Read the full answer
1. FY 2026 – FY 2030 cash‑flow build‑up ($ m) FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Revenue 972.0 1 040.0 1 102.4 1 157.6 1 215.4 EBITDA (‑% margin) 136.1 (14 %) 156.0 (15 %) 176.4 (16 %) 192.0 (16.5 %) 206.6 (17 %) Cash interest – TL (9 %) 43.2 41.0 37.6 32.8 26.8 Cash interest – Mezz (12 %) 21.6 22.0 22.5 22.9 23.4…Read the full answer