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
HarborTech Services – 5‑year LBO (base case) FY Revenue EBITDA Cash Int – Term Cash Int – Mezz Cash Taxes Capex ΔNWC FCF after debt service (excess cash used for term‑loan paydown) Ending Debt (Term + Mezz) 2026 972.0 136.1 43.2 21.6 17.8 29.2 0.4 19.1 639.7 2027 1,040.0 156.0 41.0 22.0 23.2 31.2 0.3 33.6 605.2 2028…Read the full answer