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
HarborTech Services (HTS) – LBO Underwriting Memo Entry & Capital Structure Item Amount FY2025 EBITDA $120.0m Entry Multiple 12.0x Enterprise Value $1,440.0m Transaction Fees (2.0% of EV) $28.8m Total Uses $1,468.8m Term Loan (4.0x, 9.0% cash, 1.0% amort) $480.0m Mezzanine (1.5x, 12.0% cash + 2.0% PIK) $180.0m Sponsor…Read the full answer