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 = $1,440m (Enterprise Value) Transaction Fees: 2.0% of EV = 0.02 *…Read the full answer
Investment Summary & Entry Economics Item Calculation Value ($m) Entry EBITDA FY2025 Actual 120.0 Entry EV 12.0x EBITDA 1,440.0 Transaction Fees 2.0% of EV 28.8 Total Uses EV + Fees 1,468.8 Total Debt 5.5x EBITDA (4.0x TL, 1.5x Mez) 660.0 Equity Check Uses - Debt 808.8 Debt Structure at Close: Term Loan: $480.0m (9.0%…Read the full answer