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. All calculations are built from the data provided above. Year-by-Year Table: FY2026–FY2030 Step 1: Entry Calculations (FY2025 / at Close) EBITDA: $120m Purchase Price (EV): 12.0 × $120m = $1,440m Transaction Fees: 2.0% × $1,440m = $28.8m Total Uses: $1,440m + $28.8m = $1,468.8m Debt at…Read the full answer
Year-by-Year Table (FY2026–FY2030) Assumptions: Revenue growth: FY2026: 8% on $900m = $972m; FY2027: 7% on $972m ≈ $1,040m; FY2028: 6% on $1,040m ≈ $1,102m; FY2029: 5% on $1,102m ≈ $1,158m; FY2030: 5% on $1,158m ≈ $1,215m. EBITDA: Revenue × margin (FY2026: 14%; FY2027: 15%; FY2028: 16%; FY2029: 16.5%; FY2030: 17%).Read the full answer