Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services (HTS) – 5-Year LBO Analysis Year-by-Year Model (Base Case) Metric FY2026 FY2027 FY2028 FY2029 FY2030 Revenue $972.0 $1,040.0 $1,102.4 $1,157.6 $1,215.4 EBITDA $136.1 $156.0 $176.4 $191.0 $206.6 Cash Interest (Term) $43.2 $41.0 $37.6 $32.8 $26.8 Cash Interest (Mezz) $21.6 $22.0 $22.5 $22.9 $23.4…Read the full answer
1. Simplified Year-by-Year LBO Model (FY2026–FY2030) Entry Assumptions: Enterprise Value (EV): $120m × 12.0x = $1,440m Transaction Fees: $1,440m × 2.0% = $28.8m Total Debt at Close: $120m × 5.5x = $660m Term Loan: $120m × 4.0x = $480m Mezzanine: $120m × 1.5x = $180m Equity Required: $1,440m (EV) + $28.8m (Fees) − $660m…Read the full answer