Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
1. Simplified Year-by-Year LBO Model (FY2026–FY2030) Entry Assumptions: Enterprise Value (EV): $120m × 12.0x = $1,440m Transaction Fees: $1,440m × 2.0% = $28.8m Total Debt at Close: $120m × 5.5x = $660m Term Loan: $120m × 4.0x = $480m Mezzanine: $120m × 1.5x = $180m Equity Required: $1,440m (EV) + $28.8m (Fees) − $660m…Read the full answer
1) Year-by-Year Table (FY2026–FY2030) Year Revenue EBITDA Cash Interest (Term + Mezz) Cash Taxes Capex ΔNWC FCF After Debt Service Term Loan Balance Mezzanine Balance FY2026 $972M $136.08M $64.8M $17.82M $29.16M $0.36M $23.94M $456.06M $183.6M FY2027 $1,060.44M $159.07M $64.8M $23.57M $31.81M $0.44M $38.45M $417.61M…Read the full answer