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 (HTS) – LBO Underwriting Memo Entry & Capital Structure Item Amount FY2025 EBITDA $120.0m Entry Multiple 12.0x Enterprise Value $1,440.0m Transaction Fees (2.0% of EV) $28.8m Total Uses $1,468.8m Term Loan (4.0x, 9.0% cash, 1.0% amort) $480.0m Mezzanine (1.5x, 12.0% cash + 2.0% PIK) $180.0m Sponsor…Read the full answer