Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HARBORTECH SERVICES (HTS) – 5‑year LBO underwriting ($ m) FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Revenue 972.0 1 040.0 1 102.4 1 157.6 1 215.4 EBITDA 136.1 156.0 176.4 191.0 206.6 Cash‑interest – Term Loan (9 %) 43.2 41.0 37.6 32.8 26.8 Cash‑interest – Mezz (12 %) 21.6 22.0 22.5 22.9 23.4 Total cash interest 64.8 63.1…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