Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services – 5-yr LBO model (all $ in millions) Operating & cash-flow build (FY26-30) FY25 FY26 FY27 FY28 FY29 FY30 Revenue 900 972 1,040 1,102 1,157 1,215 EBITDA 120 136 156 176 191 207 Term int (9%) 43.2 36.6 29.4 21.6 13.2 Mezz int (12%) 21.6 22.0 22.5 23.0 23.5 Tax shield @25% 17.8 24.4 31.0 36.6 42.5…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