Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Sources, uses, and operating model Entry enterprise value: [ 12.0x \times \$120.0m=\$1,440.0m ] Transaction fees: [ 2.0\% \times \$1,440.0m=\$28.8m ] Debt at close: Term Loan: (4.0x \times \$120m=\$480.0m) Mezzanine: (1.5x \times \$120m=\$180.0m) Total debt: (\$660.0m) Sponsor equity…Read the full answer
518.51935 New TL: 276.34682 - 86.82747 = 189.51935 Mezz: PIK 194.8377888 * 0.02 = 3.896755776 New Mezz: 194.8377888 + 3.896755776 = 198.734544576 Ending Balances: TL: 189.52 Mezz: 198.73 Total Debt: 388.25 Exit (End of FY2030): Exit EBITDA: 206.6252668 Exit Multiple: 10.5x Exit EV: 206.6252668 * 10.5 = 2,169.5653014…Read the full answer