Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Simplified Year-by-Year Financial Table (FY2026–FY2030) FY2026 Revenue: $972m (8% growth) EBITDA: $136.08m (14.0% margin) Cash Interest: Term Loan: $43.2m (9.0% of $480m) Mezzanine: $21.6m (12.0% of $180m) Cash Taxes: $17.07m (25% of EBITDA - cash interest) Capex: $29.16m (3.0% of revenue) ΔNWC: $3.6m (0.5% of…Read the full answer
Below is a clean LBO build using your assumptions only ($ in millions). Entry math (end FY2025) EV = (12.0 \times 120 = 1,440.0) Fees = (2.0\% \times 1,440.0 = 28.8) Total uses = (1,468.8) Debt at close (5.5x EBITDA): Term Loan = (4.0 \times 120 = 480.0) Mezz = (1.5 \times 120 = 180.0) Total debt = 660.0 Equity check…Read the full answer