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 Projection Model LBO Projection Model (FY2026-FY2030) ($ millions) FY2026 FY2027 FY2028 FY2029 FY2030 Revenue $972.0 $1,040.0 $1,102.3 $1,157.4 $1,215.3 EBITDA $136.1 $156.0 $176.4 $191.0 $206.6 Cash Interest - Term Loan $43.2 $43.2 $43.2 $43.2 $43.2 Cash Interest - Mezzanine $21.6 $21.6…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