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
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