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
518.51935 New TL: 276.34682 - 86.82747 = 189.51935 Mezz: PIK 194.8377888 * 0.02 = 3.896755776 New Mezz: 194.8377888 + 3.896755776 = 198.734544576 Ending Balances: TL: 189.52 Mezz: 198.73 Total Debt: 388.25 Exit (End of FY2030): Exit EBITDA: 206.6252668 Exit Multiple: 10.5x Exit EV: 206.6252668 * 10.5 = 2,169.5653014…Read the full answer