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 $808.8m Year-by-Year Model (FY2026–FY2030)…Read the full answer
1. FY 2026 – FY 2030 cash‑flow build‑up ($ m) FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Revenue 972.0 1 040.0 1 102.4 1 157.6 1 215.4 EBITDA (‑% margin) 136.1 (14 %) 156.0 (15 %) 176.4 (16 %) 192.0 (16.5 %) 206.6 (17 %) Cash interest – TL (9 %) 43.2 41.0 37.6 32.8 26.8 Cash interest – Mezz (12 %) 21.6 22.0 22.5 22.9 23.4…Read the full answer