Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Simplified LBO Model (FY2026–FY2030, $m) Year Revenue EBITDA TL Cash Int. Mezz Cash Int. Cash Taxes Capex ΔNWC FCF After Debt Service* End TL End Mezz End Total Debt FY26 972.0 136.1 43.2 21.6 17.8 29.2 0.4 19.1 456.1 183.6 639.7 FY27 1,040.0 156.0 41.1 22.0 23.2 31.2 0.3 33.6 417.9 187.3 605.2 FY28 1,102.4 176.4 37.6…Read the full answer
Entry capitalization All figures in $m unless noted. FY2025 EBITDA = $120.0 Entry EV = 12.0x × $120.0 = $1,440.0 Transaction fees = 2.0% × $1,440.0 = $28.8 Term Loan = 4.0x × $120.0 = $480.0 Mezzanine = 1.5x × $120.0 = $180.0 Equity = EV + fees – debt = $1,440.0 + $28.8 – $660.0 = $808.8 Sources & Uses Uses $m Sources…Read the full answer