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
1. Simplified Year-by-Year LBO Model (FY2026–FY2030) Entry Assumptions: Enterprise Value (EV): $120m × 12.0x = $1,440m Transaction Fees: $1,440m × 2.0% = $28.8m Total Debt at Close: $120m × 5.5x = $660m Term Loan: $120m × 4.0x = $480m Mezzanine: $120m × 1.5x = $180m Equity Required: $1,440m (EV) + $28.8m (Fees) − $660m…Read the full answer