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 / debt schedule Entry capitalization Entry enterprise value: (12.0 \times \$120.0 = \$1,440.0m) Transaction fees: (2.0\% \times \$1,440.0 = \$28.8m) Term Loan: (4.0 \times \$120.0 = \$480.0m) Mezzanine: (1.5 \times \$120.0 = \$180.0m) Equity contribution…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