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
Entry capitalization All figures in $m unless noted. FY2025 EBITDA = $120.0 Entry EV = 12.0x × $120.0 = $1,440.0 Transaction fees = 2.0% × $1,440.0 = $28.8 Term Loan = 4.0x × $120.0 = $480.0 Mezzanine = 1.5x × $120.0 = $180.0 Equity = EV + fees – debt = $1,440.0 + $28.8 – $660.0 = $808.8 Sources & Uses Uses $m Sources…Read the full answer