Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
1) Year-by-Year Projections (FY2026–FY2030) (All figures in $ millions) Metric FY2026 FY2027 FY2028 FY2029 FY2030 Revenue 972 1,040 1,102 1,157 1,215 EBITDA 136 156 176 191 207 Cash Interest (Term Loan) 38.9 37.8 36.5 35.0 33.3 Cash Interest (Mezz) 14.4 14.4 14.4 14.4 14.4 Total Cash Interest 53.3 52.2 50.9 49.4 47.7…Read the full answer
HarborTech Services (HTS) – LBO Underwriting Memo Entry & Capital Structure Item Amount FY2025 EBITDA $120.0m Entry Multiple 12.0x Enterprise Value $1,440.0m Transaction Fees (2.0% of EV) $28.8m Total Uses $1,468.8m Term Loan (4.0x, 9.0% cash, 1.0% amort) $480.0m Mezzanine (1.5x, 12.0% cash + 2.0% PIK) $180.0m Sponsor…Read the full answer