Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
1) Year-by-Year Model (FY2026–2030) Line Item FY2026 FY2027 FY2028 FY2029 FY2030 Revenue $972.0 $1,040.0 $1,102.5 $1,157.6 $1,215.5 EBITDA $136.1 $156.0 $176.4 $191.0 $206.6 EBITDA Margin 14.0% 15.0% 16.0% 16.5% 17.0% Cash Interest - TL $43.2 $42.8 $42.3 $41.9 $41.5 Cash Interest - Mezz $16.2 $16.2 $16.2 $16.2 $16.2…Read the full answer
HarborTech Services - 5-Yr LBO - Base Case Entry - close end FY2025 FY25 EBITDA $120m EV = 12.0x * 120 = $1,440m Fees = 2.0% * 1,440 = $28.8m Uses = 1,440 + 28.8 = $1,468.8m Sources: Term Loan 4.0x = $480m, 9.0% cash, 1% amort = $4.8m/yr mandatory Mezz 1.5x = $180m, 12.0% cash + 2.0% PIK to principal Total debt $660m =…Read the full answer