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 = $808.8m (~55% of cap) Annual Model…Read the full answer
Year-by-Year Financial Table ($m) Year FY2026 FY2027 FY2028 FY2029 FY2030 Revenue 972.0 1,040.0 1,102.4 1,157.6 1,215.4 EBITDA 136.1 156.0 176.4 191.0 206.6 Cash Interest (Term Loan) 43.2 41.1 37.6 32.8 26.8 Cash Interest (Mezzanine) 21.6 22.0 22.5 22.9 23.4 Cash Taxes 17.8 23.2 29.1 33.8 39.1 Capex 29.2 31.2 33.1 34.7…Read the full answer