Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services (HTS) LBO Underwriting Memo Entry & Sources/Uses Summary Entry Valuation (FY2025) Revenue: $900m EBITDA: $120m Purchase Multiple: 12.0x Enterprise Value: $1,440m Transaction Fees (2.0%): $28.8m Total Uses: $1,468.8m Sources & Uses at Close Source Amount % Use Amount Term Loan (4.0x) $480.0m 32.7%…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