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 Entry Summary Item Value FY2025 Revenue / EBITDA $900m / $120m Purchase EV (12.0x) $1,440m Transaction fees (2%) $28.8m → equity Term Loan (4.0x) $480m @ 9% cash, 1% amort Mezzanine (1.5x) $180m @ 12% cash + 2% PIK Equity invested $808.8m Year-by-Year Model (FY2026–FY2030)…Read the full answer
Year-by-Year Table (FY2026–FY2030) Year Revenue EBITDA Cash Interest Cash Taxes Capex ΔNWC FCF Ending Debt 2026 $972m $136m $36m ($32m TL, $4m Mezz) $2.8m $29m $4.9m $63m $1,050m ($720m TL, $330m Mezz) 2027 $1,038m $155m $37m ($33m TL, $4m Mezz) $6.3m $31m $5.2m $76m $974m ($654m TL, $320m Mezz) 2028 $1,103m $176m $38m…Read the full answer