Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Entry (close end of FY2025) FY2025 EBITDA = $120.0m Entry EV = 12.0x = 12.0 × 120.0 = $1,440.0m Transaction fees = 2.0% EV = 0.02 × 1,440.0 = $28.8m (equity-funded) Debt at close (5.5x EBITDA = 5.5 × 120 = $660m): Term Loan = 4.0x = $480.0m Mezzanine = 1.5x = $180.0m Equity check Uses = 1,440.0 + 28.8 = $1,468.8m…Read the full answer
1) Simplified LBO Model (FY2026–FY2030, $m) Entry (end FY25): EBITDA $120m, EV = 12.0x = $1,440m. Fees 2% = $28.8m. Debt: TL $480m (9% cash, 1% amort), Mezz $180m (12% cash + 2% PIK). Equity = 1,440+28.8–660 = $808.8m. FY Revenue EBITDA TL Int Mezz Int Cash Tax* Capex ΔNWC FCF after req. svc (opt.Read the full answer