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 $808.8m Year-by-Year Model (FY2026–FY2030)…Read the full answer
Simplified Year-by-Year Table (FY2026–FY2030) Year Revenue ($M) EBITDA ($M) TL Interest ($M) Mezz Interest ($M) Cash Taxes ($M) Capex ($M) ΔNWC ($M) FCF ($M) TL Balance ($M) Mezz Balance ($M) FY2026 972.0 136.1 43.2 21.6 17.8 29.2 0.4 23.9 456.1 183.6 FY2027 1,040.0 156.0 41.0 22.0 23.2 31.2 0.3 38.2 417.9 187.3 FY2028…Read the full answer