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 = $1,468.8m…Read the full answer
1 – Year‑by‑Year Operating / Debt Table (FY2026‑FY2030) FY Rev ($m) EBITDA ($m) Cash interest – TL ($m) Cash interest – Mezz ($m) Total cash interest ($m) Cash tax 25 % of (EBITDA‑interest) ($m) Capex ($m) ΔNWC ($m) Cash after all charges ($m) Required TL amort ($m) Optional TL pay‑down ($m) Ending TL ($m) Ending Mezz…Read the full answer