Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Here are the requested items: 1. Simplified Year-by-Year Table (FY2026-FY2030) Year Revenue EBITDA Cash Int. (TL) Cash Int. (Mz) Cash Taxes Capex ΔNWC FCF TL Balance Mz Balance 2026 972 136.08 36.00 18.00 17.12 29.16 4.86 30.90 360.00 135.00 2027 1037.84 154.78 33.60 19.44 20.45 31.13 5.19 44.12 315.88 133.56 2028…Read the full answer
HarborTech Services - 5-Yr LBO - Base Case Entry - close end FY2025 FY25 EBITDA $120m EV = 12.0x * 120 = $1,440m Fees = 2.0% * 1,440 = $28.8m Uses = 1,440 + 28.8 = $1,468.8m Sources: Term Loan 4.0x = $480m, 9.0% cash, 1% amort = $4.8m/yr mandatory Mezz 1.5x = $180m, 12.0% cash + 2.0% PIK to principal Total debt $660m =…Read the full answer