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
HarborTech Services – 5-Year LBO Underwriting (All numbers in $ millions unless noted) Operating & Cash-Flow Model (FY2026-FY2030) Constants at close Entry EBITDA = 120 EV = 12.0×120 = 1,440 Transaction fees = 2 %×1,440 = 28.8 (equity funded) Debt: Term 4.0×120 = 480; Mezz 1.5×120 = 180 Total uses = 1,440 + 28.8 =…Read the full answer