Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Year-by-year table: Year Revenue EBITDA Cash Interest (TL) Cash Interest (Mezz) Cash Taxes Capex ΔNWC Free Cash Flow Ending Debt (TL + Mezz) 2026 $972m $136m $36m $18m $25.5m $29.2m $4.86m $60.44m $528.14m 2027 $1,038m $156m $36m $18m $30m $31.1m $5.19m $63.81m $475.75m 2028 $1,105m $177m $36m $18m $35.25m $33.2m…Read the full answer
HarborTech Services (HTS) – 5-Year LBO Analysis Sources & Uses at Close (FY2025) Sources $m Uses $m Term Loan (4.0x) 480.0 Purchase price (12.0x × $120) 1,440.0 Mezzanine (1.5x) 180.0 Transaction fees (2.0% × EV) 28.8 Sponsor Equity (plug) 808.8 Total 1,468.8 Total 1,468.8 Initial Mezz: $180m; Initial TL: $480m.Read the full answer