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
518.51935 New TL: 276.34682 - 86.82747 = 189.51935 Mezz: PIK 194.8377888 * 0.02 = 3.896755776 New Mezz: 194.8377888 + 3.896755776 = 198.734544576 Ending Balances: TL: 189.52 Mezz: 198.73 Total Debt: 388.25 Exit (End of FY2030): Exit EBITDA: 206.6252668 Exit Multiple: 10.5x Exit EV: 206.6252668 * 10.5 = 2,169.5653014…Read the full answer