Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Summary of transaction math (at close / FY2025) EV (purchase price) = 12.0x * FY2025 EBITDA = 12.0 * $120.0m = $1,440.0m Transaction fees (paid by equity at close) = 2.0% * EV = 0.02 * $1,440.0m = $28.8m Total debt at close = 5.5x * $120m = $660.0m Term Loan = 4.0x = $480.0m (9.0% cash interest, 1.0% p.a.Read the full answer
Year-by-Year Table (FY2026–FY2030) Assumptions: Revenue growth: FY2026: 8% on $900m = $972m; FY2027: 7% on $972m ≈ $1,040m; FY2028: 6% on $1,040m ≈ $1,102m; FY2029: 5% on $1,102m ≈ $1,158m; FY2030: 5% on $1,158m ≈ $1,215m. EBITDA: Revenue × margin (FY2026: 14%; FY2027: 15%; FY2028: 16%; FY2029: 16.5%; FY2030: 17%).Read the full answer