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 Underwriting (All numbers in $ millions unless noted) Operating & Cash-Flow Model (FY2026-FY2030) Constants at close Entry EBITDA = 120 EV = 12.0×120 = 1,440 Transaction fees = 2 %×1,440 = 28.8 (equity funded) Debt: Term 4.0×120 = 480; Mezz 1.5×120 = 180 Total uses = 1,440 + 28.8 =…Read the full answer
1) Year-by-Year Table (FY2026–FY2030) Year Revenue EBITDA Cash Interest (Term + Mezz) Cash Taxes Capex ΔNWC FCF After Debt Service Term Loan Balance Mezzanine Balance FY2026 $972M $136.08M $64.8M $17.82M $29.16M $0.36M $23.94M $456.06M $183.6M FY2027 $1,060.44M $159.07M $64.8M $23.57M $31.81M $0.44M $38.45M $417.61M…Read the full answer