Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Let’s underwrite this 5-year LBO for HarborTech Services (HTS). I'll break this down step-by-step, keeping calculations clear and concise. Step 1: Sources & Uses at Entry (End of FY2025) EBITDA (FY2025): $120m Purchase Price: 12.0x EBITDA = 12.0 * $120m = $1,440m (Enterprise Value) Transaction Fees: 2.0% of EV = 0.02 *…Read the full answer
HarborTech Services (HTS) – 5‑yr LBO (FY2026‑FY2030) All figures are $ m (rounded to two decimals). FY Revenue EBITDA Term‑Loan Int. (9%) Mezz Int. (12%) Total Int. Cash Tax (25% of EBITDA‑Int.) Capex (3% Rev) ΔNWC (0.5% ΔRev) Required Amort. (4.8) Free Cash Flow (EBITDA‑Int‑Tax‑Capex‑ΔNWC‑Amort.)Read the full answer