Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
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
HarborTech Services - 5-Yr LBO - Base Case Entry - Close end FY2025, $m EV = 12.0x $120 = $1,440 Fees = 2.0% x 1,440 = $28.8 Uses = 1,440 + 28.8 = 1,468.8 Term Loan 4.0x = $480, 9.0% cash, 1.0% of original amort = $4.8/yr Mezz 1.5x = $180, 12.0% cash + 2.0% PIK to principal Total Debt 5.5x = $660 Equity In = 1,468.8…Read the full answer