Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Below is a concise but fully worked underwriting using only your inputs. Minor rounding throughout. Operating & Cash Flow Build (Base Case) Entry (end FY2025) EBITDA: $120m EV @ 12.0x: $1,440m Debt: $660m (TL $480m / Mezz $180m) Fees (2% EV): $28.8m Equity invested: $808.8m Year-by-Year Summary ($mm) FY Revenue EBITDA…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