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
Simplified Year-by-Year Table (FY2026–FY2030) Year Revenue ($M) EBITDA ($M) TL Interest ($M) Mezz Interest ($M) Cash Taxes ($M) Capex ($M) ΔNWC ($M) FCF ($M) TL Balance ($M) Mezz Balance ($M) FY2026 972.0 136.1 43.2 21.6 17.8 29.2 0.4 23.9 456.1 183.6 FY2027 1,040.0 156.0 41.0 22.0 23.2 31.2 0.3 38.2 417.9 187.3 FY2028…Read the full answer