Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
1) Simplified LBO Model (FY2026–FY2030, $m) Entry (end FY25): EBITDA $120m, EV = 12.0x = $1,440m. Fees 2% = $28.8m. Debt: TL $480m (9% cash, 1% amort), Mezz $180m (12% cash + 2% PIK). Equity = 1,440+28.8–660 = $808.8m. FY Revenue EBITDA TL Int Mezz Int Cash Tax* Capex ΔNWC FCF after req. svc (opt.Read the full answer
1. Year-by-Year Financial Projections (FY2026–FY2030) FY 2026 2027 2028 2029 2030 Revenue $972m (+8%) $1,039m (+7%) $1,099m (+6%) $1,154m (+5%) $1,212m (+5%) EBITDA $136m (14.0%) $156m (15.0%) $176m (16.0%) $190m (16.5%) $206m (17.0%) Cash Int (Term Loan) $43.2m $42.5m $41.8m $41.1m $40.4m Cash Int (Mezz) $21.6m $22.3m…Read the full answer