Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
MEMORANDUM To: Investment Committee From: Underwriting Team Date: October 26, 2023 Subject: Project Harbor – HarborTech Services (HTS) LBO Underwriting Transaction Overview & Sources & Uses (at Close, end of FY2025) Entry EBITDA: $120.0m Entry Multiple: 12.0x Enterprise Value (EV): $1,440.0m Transaction Fees (2% EV)…Read the full answer
Year-by-Year Financial Model (FY2026–FY2030) Assumptions & Calculations Logic: Interest: Calculated on beginning debt balance. Term Loan amortizes 1.0% annually (cash). Mezzanine accrues 2.0% PIK annually. Taxes: 25% of (EBITDA - Cash Interest). Tax shields applied to cash interest only.Read the full answer