Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Entry & Sources & Uses FY2025 EBITDA: $120m Purchase Price (EV): 12.0x × $120m = $1,440m Transaction Fees: 2.0% × $1,440m = $28.8m Total Uses: $1,440m + $28.8m = $1,468.8m Total Leverage: 5.5x × $120m = $660m Term Loan: 4.0x × $120m = $480m (9.0% cash interest, 1.0% mandatory amortization = $4.8m/yr) Mezzanine: 1.5x ×…Read the full answer
1. Year-by-Year Financial Projections (FY2026–FY2030) FY 2026 2027 2028 2029 2030 Revenue $972m (+8%) $1,039m (+7%) $1,099m (+6%) $1,154m (+5%) $1,212m (+5%) EBITDA $136m (14.0%) $156m (15.0%) $176m (16.0%) $190m (16.5%) $206m (17.0%) Cash Int (Term Loan) $43.2m $42.5m $41.8m $41.1m $40.4m Cash Int (Mezz) $21.6m $22.3m…Read the full answer