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 Analysis Sources & Uses at Close (FY2025) Sources $m Uses $m Term Loan (4.0x) 480.0 Purchase price (12.0x × $120) 1,440.0 Mezzanine (1.5x) 180.0 Transaction fees (2.0% × EV) 28.8 Sponsor Equity (plug) 808.8 Total 1,468.8 Total 1,468.8 Initial Mezz: $180m; Initial TL: $480m.Read the full answer
1) Year-by-Year Financial Projections (FY2026–FY2030) Year Revenue EBITDA Cash Interest Taxes Capex ΔNWC FCF After Debt Service Ending Debt (TL + Mezz) FY2026 $972M $138M $10.8M (TL) + $1.8M (Mezz) = $12.6M $29.3M $29.2M $4.9M $48.3M $495M FY2027 $1,041M $159M $10.8M (TL) + $1.8M (Mezz) = $12.6M $31.8M $31.2M $5.2M…Read the full answer