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: $3.6m (0.5% of…Read the full answer
Investment Summary & Entry Economics Item Calculation Value ($m) Entry EBITDA FY2025 Actual 120.0 Entry EV 12.0x EBITDA 1,440.0 Transaction Fees 2.0% of EV 28.8 Total Uses EV + Fees 1,468.8 Total Debt 5.5x EBITDA (4.0x TL, 1.5x Mez) 660.0 Equity Check Uses - Debt 808.8 Debt Structure at Close: Term Loan: $480.0m (9.0%…Read the full answer