Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services — LBO Underwrite Sources & Uses $m Uses Enterprise Value (12.0× $120m) 1,440.0 Transaction Fees (2.0%) 28.8 Total Uses 1,468.8 Sources Term Loan (4.0× EBITDA) 480.0 Mezzanine (1.5× EBITDA) 180.0 Total Debt 660.0 44.9% Sponsor Equity 808.8 55.1% Year-by-Year Operating Model (FY2026–FY2030) All…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