Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Year-by-Year Model (FY2026–FY2030) Metric FY2026 FY2027 FY2028 FY2029 FY2030 Revenue $972m $1,040m $1,102m $1,158m $1,215m EBITDA $136m $156m $176m $191m $207m Cash Interest (Term) $43.2m $41.1m $37.6m $33.4m $28.2m Cash Interest (Mezz) $21.6m $21.6m $21.6m $21.6m $21.6m Cash Taxes (25%) $17.8m $23.3m $29.3m $34.7m…Read the full answer
HarborTech Services (HTS) – 5-Year LBO Underwriting 1. Sources & Uses (Close FY2025) Uses Amount ($m) Sources Amount ($m) x EBITDA Enterprise Value (12.0x) 1,440.0 Term Loan (9% cash, 1% amort) 480.0 4.0x Transaction Fees (2.0%) 28.8 Mezzanine (12% cash + 2% PIK) 180.0 1.5x Total Uses 1,468.8 Equity 808.8 5.5x Total…Read the full answer