Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services – 5-Year LBO Model (Entry: end of FY2025) Entry Valuation & Sources & Uses FY2025 EBITDA = $120m → Purchase EV = 12.0x = $1,440m Transaction fees = 2.0% × 1,440 = $28.8m Total Uses = 1,440 + 28.8 = $1,468.8m Debt at close Term Loan (4.0x) = 4.0 × 120 = $480.0m (9% cash, 1% amort) Mezzanine (1.5x) =…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