Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Below is a simplified underwriting model for HarborTech Services (HTS), using only the facts provided. Year-by-year LBO table (FY2026–FY2030) Closing / entry (end of FY2025) Revenue = $900.0m EBITDA = $120.0m Purchase price = 12.0x = $1,440.0m EV Transaction fees = 2.0% of EV = $28.8m Total leverage = 5.5x EBITDA =…Read the full answer
Operating and debt schedule Conventions: Interest is calculated on beginning-of-year debt; the 1% Term Loan amortization is 1% of its original $480m principal ($4.8m annually). Mezzanine PIK accrues at 2% annually.Read the full answer