Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Simplified Year-by-Year Model (FY2026–FY2030) Entry (FY2025 Close) Enterprise Value (EV): $120m * 12.0x = $1,440m Transaction Fees: 2.0% * $1,440m = $28.8m (equity funded) Total Equity Required: $1,440m (purchase) + $28.8m (fees) = $1,468.8m Debt Issued: $120m * 5.5x = $660m (Term Loan $480m, Mezz $180m) Initial Debt…Read the full answer
HarborTech Services – 5‑year LBO (base case) FY Revenue EBITDA Cash Int – Term Cash Int – Mezz Cash Taxes Capex ΔNWC FCF after debt service (excess cash used for term‑loan paydown) Ending Debt (Term + Mezz) 2026 972.0 136.1 43.2 21.6 17.8 29.2 0.4 19.1 639.7 2027 1,040.0 156.0 41.0 22.0 23.2 31.2 0.3 33.6 605.2 2028…Read the full answer