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
Key assumptions Entry closes at end of FY2025; exit at end of FY2030. Interest is calculated on beginning-of-year debt balances. Term Loan amortization = 1.0% of original Term Loan principal = $4.8m/year. Mezz PIK = 2.0% of beginning-of-year Mezz balance, added to principal annually.Read the full answer