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
518.51935 New TL: 276.34682 - 86.82747 = 189.51935 Mezz: PIK 194.8377888 * 0.02 = 3.896755776 New Mezz: 194.8377888 + 3.896755776 = 198.734544576 Ending Balances: TL: 189.52 Mezz: 198.73 Total Debt: 388.25 Exit (End of FY2030): Exit EBITDA: 206.6252668 Exit Multiple: 10.5x Exit EV: 206.6252668 * 10.5 = 2,169.5653014…Read the full answer