Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
1) Projected cash flows & debt (FY2026–FY2030, $m) (“FCF after debt service” = after interest, taxes, capex, ΔNWC, mandatory amort; applied to optional TL paydown) Year Revenue EBITDA TL Cash Int. Mezz Cash Int. Cash Taxes Capex ΔNWC FCF after debt service End TL Bal. End Mezz Bal. (incl.Read the full answer
HarborTech Services — simplified LBO ($m) Entry: Enterprise value = 12.0 × $120 = $1,440. Fees are $28.8; opening debt is a $480 term loan plus $180 mezzanine loan. Initial equity = $1,440 + $28.8 − $660 = $808.8. Interest is calculated on beginning-of-year balances.Read the full answer