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 = $808.8. Interest is calculated on beginning-of-year balances.Read the full answer
1. Year-by-Year Financial Projections (FY2026–FY2030) Year Revenue ($m) EBITDA ($m) EBITDA Margin Cash Interest ($m) Cash Taxes ($m) Capex ($m) ΔNWC ($m) Free Cash Flow ($m) Term Loan Ending ($m) Mezz Ending ($m) 2026 972.0 136.1 14.0% 57.6 19.6 29.2 4.4 25.3 468.0 198.0 2027 1,039.4 155.9 15.0% 55.3 25.2 31.2 4.6 39.8…Read the full answer