Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services (HTS) LBO Analysis 1. Year-by-Year Projections (FY2026–FY2030) (All figures in $m, rounded to one decimal) Year Revenue EBITDA Cash Interest (TL) Cash Interest (Mezz) Total Cash Interest Cash Taxes Capex ΔNWC FCF After Debt Service¹ Ending TL Ending Mezz 2026 972.0 136.1 43.2 21.6 64.8 17.8 29.2 0.4…Read the full answer
We need to build a simplified year-by-year table FY2026-FY2030. First, compute initial purchase price: EBITDA FY2025 = $120m. Purchase price = 12.0x EBITDA = 12 * 120 = $1,440m (enterprise value). Transaction fees = 2.0% of EV = 0.02 * 1440 = $28.8m, paid at close from equity. Total leverage at close = 5.5x EBITDA.Read the full answer