Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Below is a clean LBO build using your assumptions only ($ in millions). Entry math (end FY2025) EV = \(12.0 \times 120 = 1,440.0\) Fees = \(2.0\% \times 1,440.0 = 28.8\) Total uses = \(1,468.8\) Debt at close (5.5x EBITDA): Term Loan = \(4.0 \times 120 = 480.0\) Mezz = \(1.5 \times 120 = 180.0\) Total debt = 660.0…Read the full answer
Year-by-Year Table (FY2026–FY2030) Assumptions: Revenue growth: FY2026: 8% on $900m = $972m; FY2027: 7% on $972m ≈ $1,040m; FY2028: 6% on $1,040m ≈ $1,102m; FY2029: 5% on $1,102m ≈ $1,158m; FY2030: 5% on $1,158m ≈ $1,215m. EBITDA: Revenue × margin (FY2026: 14%; FY2027: 15%; FY2028: 16%; FY2029: 16.5%; FY2030: 17%).Read the full answer