Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Year-by-Year Table (FY2026–FY2030) Assumptions: Revenue growth: FY2026: 8% on $900m = $972m; FY2027: 7% on $972m ≈ $1,040m; FY2028: 6% on $1,040m ≈ $1,102m; FY2029: 5% on $1,102m ≈ $1,158m; FY2030: 5% on $1,158m ≈ $1,215m. EBITDA: Revenue × margin (FY2026: 14%; FY2027: 15%; FY2028: 16%; FY2029: 16.5%; FY2030: 17%).Read the full answer
HarborTech Services (HTS) – 5‑year LBO (simplified) 1️⃣ Entry (FY2025) Item Value FY2025 Revenue $900 m FY2025 EBITDA $120 m Purchase price (12×EBITDA) $1 440 m Transaction fees (2 % of EV) $28.8 m Total debt (5.5×EBITDA) $660 m – Term Loan (4.0×EBITDA) $480 m – Mezzanine (1.5×EBITDA) $180 m Equity needed (price + fees…Read the full answer