Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
1) Simplified FY2026–FY2030 Operating & Debt Table (Figures in $m; ΔNWC is outflow; “FCF after debt service” = EBITDA – cash interest – cash taxes – capex – ΔNWC. Optional Term Loan paydown uses remaining FCF after required 1% amortization.)Read the full answer
HarborTech Services — simplified LBO ($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