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 Financial Projections (FY2026–FY2030) Year Revenue EBITDA Cash Interest Taxes Capex ΔNWC FCF After Debt Service Ending Debt (TL + Mezz) FY2026 $972M $138M $10.8M (TL) + $1.8M (Mezz) = $12.6M $29.3M $29.2M $4.9M $48.3M $495M FY2027 $1,041M $159M $10.8M (TL) + $1.8M (Mezz) = $12.6M $31.8M $31.2M $5.2M…Read the full answer