Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Sources & Uses (Entry at End FY2025) Uses Purchase Price: $1,440.0m (12.0x $120m EBITDA) Transaction Fees: $28.8m (2.0% of EV) Total Uses: $1,468.8m Sources Term Loan: $480.0m (4.0x EBITDA) Mezzanine: $180.0m (1.5x EBITDA) Total Debt: $660.0m (5.5x EBITDA) Equity: $808.8m (Plug) Total Sources: $1,468.8m Year-by-Year…Read the full answer
518.51935 New TL: 276.34682 - 86.82747 = 189.51935 Mezz: PIK 194.8377888 * 0.02 = 3.896755776 New Mezz: 194.8377888 + 3.896755776 = 198.734544576 Ending Balances: TL: 189.52 Mezz: 198.73 Total Debt: 388.25 Exit (End of FY2030): Exit EBITDA: 206.6252668 Exit Multiple: 10.5x Exit EV: 206.6252668 * 10.5 = 2,169.5653014…Read the full answer