Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Year-by-Year Financial Projection (FY2026–FY2030) Assumptions: Revenue Growth Rates: FY2026: 8%, FY2027: 7%, FY2028: 6%, FY2029: 5%, FY2030: 5% EBITDA Margins: FY2026: 14%, FY2027: 15%, FY2028: 16%, FY2029: 16.5%, FY2030: 17% Capex: 3% of revenue ΔNWC: 0.5% of incremental revenue Cash Tax Rate: 25% on max(0, EBITDA…Read the full answer
518.51935 New TL: 276.34682 - 86.82747 = 189.51935 Mezz: PIK 194.8377888 * 0.02 = 3.896755776 New Mezz: 194.8377888 + 3.896755776 = 198.734544576 Ending Balances: TL: 189.52 Mezz: 198.73 Total Debt: 388.25 Exit (End of FY2030): Exit EBITDA: 206.6252668 Exit Multiple: 10.5x Exit EV: 206.6252668 * 10.5 = 2,169.5653014…Read the full answer