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
1) Year-by-Year Projections (FY2026–FY2030) (All figures in $ millions) Metric FY2026 FY2027 FY2028 FY2029 FY2030 Revenue 972 1,040 1,102 1,157 1,215 EBITDA 136 156 176 191 207 Cash Interest (Term Loan) 38.9 37.8 36.5 35.0 33.3 Cash Interest (Mezz) 14.4 14.4 14.4 14.4 14.4 Total Cash Interest 53.3 52.2 50.9 49.4 47.7…Read the full answer