Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HTS LBO Model Year-By-Year Projections Year Revenue EBITDA Cash Interest (TL) Cash Interest (Mezz) Cash Taxes Capex ΔNWC Free Cash Flow TL Balance Mezz Balance 2025 $900.00m $120.00m $43.20m $21.60m $0.00m $27.00m $0.00m -$28.80m $480.00m $198.00m 2026 $972.00m $136.08m $43.20m $21.60m $12.78m $29.16m $3.60m $25.74m…Read the full answer
Entry & Capital Structure Math Entry EV = 12.0x × $120m EBITDA = $1,440.0m Transaction Fees = 2.0% × $1,440m = $28.8m (equity funded) Total Uses = $1,440.0m + $28.8m = $1,468.8m Debt Raised = 5.5x × $120m = $660.0m Term Loan: 4.0x = $480.0m (9.0% cash, 1.0% mandatory amort = $4.8m/yr) Mezzanine: 1.5x = $180.0m (12.0%…Read the full answer