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 – 5‑year LBO (base case) FY Revenue EBITDA Cash Int – Term Cash Int – Mezz Cash Taxes Capex ΔNWC FCF after debt service (excess cash used for term‑loan paydown) Ending Debt (Term + Mezz) 2026 972.0 136.1 43.2 21.6 17.8 29.2 0.4 19.1 639.7 2027 1,040.0 156.0 41.0 22.0 23.2 31.2 0.3 33.6 605.2 2028…Read the full answer