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
Base-case underwriting (FY2026–FY2030) Assumptions / conventions used All amounts in $m unless noted. Close occurs at end of FY2025; FY2026 is Year 1. Interest is calculated on beginning-of-year debt balances; optional Term Loan paydown occurs at year-end. Term Loan amortization: 1.0% of original $480m TL = $4.8m/yr.Read the full answer