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
Entry capitalization All figures in $m unless noted. FY2025 EBITDA = $120.0 Entry EV = 12.0x × $120.0 = $1,440.0 Transaction fees = 2.0% × $1,440.0 = $28.8 Term Loan = 4.0x × $120.0 = $480.0 Mezzanine = 1.5x × $120.0 = $180.0 Equity = EV + fees – debt = $1,440.0 + $28.8 – $660.0 = $808.8 Sources & Uses Uses $m Sources…Read the full answer