Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Let's proceed step-by-step. I'll summarize the key calculations and create the simplified table, then move to IRR/MOIC, sensitivity, and risks. Initial Deal Assumptions Recap Entry EBITDA FY2025: $120m Entry EV: 12.0x EBITDA = 12.0 * 120 = $1,440m Transaction fees: 2.0% * $1,440m = $28.8m (paid from equity) Leverage at…Read the full answer
1. Year-by-Year Financial Projections (FY2026–FY2030) Key Inputs at Close (FY2025): Purchase Price: 12.0x EBITDA = $1.44B Total Debt: 5.5x EBITDA = $660M Term Loan: 4.0x EBITDA = $480M (9.0% cash interest, 1.0% amortization) Mezzanine: 1.5x EBITDA = $180M (12.0% cash interest + 2.0% PIK) Equity: $1.44B - $660M = $780M…Read the full answer