Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Sources & Uses at Entry All figures in $ millions. Uses $m Sources $m Enterprise value: $120 × 12.0x 1,440.0 Term Loan: $120 × 4.0x 480.0 Transaction fees: 2.0% × $1,440 28.8 Mezzanine: $120 × 1.5x 180.0 Sponsor equity 808.8 Total uses 1,468.8 Total sources 1,468.8 Assumptions: Term Loan interest is calculated on…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