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 Year-by-Year Cash Flow Table (FY2026–FY2030) Year Revenue EBITDA Cash Interest (Term + Mezz) Cash Taxes Capex ΔNWC FCF After Required Payments Term Loan Balance Mezz Balance 2026 $972.0M $136.1M $64.8M $17.8M $29.2M $0.4M $19.1M $456.1M $183.6M 2027 $1,040.0M $156.0M $63.1M $23.2M $31.2M $0.3M $33.4M $417.9M…Read the full answer