Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services — simplified LBO ($m) Entry: Enterprise value = 12.0 × $120 = $1,440. Fees are $28.8; opening debt is a $480 term loan plus $180 mezzanine loan. Initial equity = $1,440 + $28.8 − $660 = $808.8. Interest is calculated on beginning-of-year balances.Read the full answer
1. FY 2026 – FY 2030 cash‑flow build‑up ($ m) FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Revenue 972.0 1 040.0 1 102.4 1 157.6 1 215.4 EBITDA (‑% margin) 136.1 (14 %) 156.0 (15 %) 176.4 (16 %) 192.0 (16.5 %) 206.6 (17 %) Cash interest – TL (9 %) 43.2 41.0 37.6 32.8 26.8 Cash interest – Mezz (12 %) 21.6 22.0 22.5 22.9 23.4…Read the full answer