Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services – 5-Year LBO Underwrite (FY2025 Entry → FY2030 Exit) ENTRY & CAPITAL STRUCTURE (End of FY2025) Item Calculation Amount FY2025 EBITDA $120.0m Purchase Price (12.0x) 12.0 × 120 $1,440.0m Transaction Fees (2.0%) 2.0% × 1,440 $28.8m Total Uses $1,468.8m Term Loan (4.0x) 4.0 × 120 $480.0m Mezzanine…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