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
HarborTech Services LBO Underwriting Task 1: Year-by-Year Financial Projections FY Revenue EBITDA TL Interest Mezz Interest Total Interest Taxable Income Cash Taxes Capex ΔNWC FCF After Debt Service End TL End Mezz Total Debt 2026 972 136.1 39.6 14.4 54.0 82.1 20.5 29.2 3.6 48.8 396.0 183.7 579.7 2027 1,039 155.9 35.6…Read the full answer