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 = $28.8m (paid from equity) Leverage at…Read the full answer
Year-by-Year Financial Table ($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