Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Below is a concise, math-forward underwriting package for HarborTech Services (HTS) LBO. Simplified 5-year cash flow (FY2026–FY30) Key inputs Entry EV = 12.0× FY25 EBITDA = 12.0×120 = $1,440m Transaction fees (2% of EV) = $28.8m → funded 100% by equity at close Starting cash = $0 Total leverage at close = 5.5× EBITDA =…Read the full answer
1. Year-by-Year Financial Projections (FY2026–FY2030) Year Revenue ($m) EBITDA ($m) EBITDA Margin Cash Interest ($m) Cash Taxes ($m) Capex ($m) ΔNWC ($m) Free Cash Flow ($m) Term Loan Ending ($m) Mezz Ending ($m) 2026 972.0 136.1 14.0% 57.6 19.6 29.2 4.4 25.3 468.0 198.0 2027 1,039.4 155.9 15.0% 55.3 25.2 31.2 4.6 39.8…Read the full answer