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 Financial Projections (FY2026–FY2030) FY 2026 2027 2028 2029 2030 Revenue $972m (+8%) $1,039m (+7%) $1,099m (+6%) $1,154m (+5%) $1,212m (+5%) EBITDA $136m (14.0%) $156m (15.0%) $176m (16.0%) $190m (16.5%) $206m (17.0%) Cash Int (Term Loan) $43.2m $42.5m $41.8m $41.1m $40.4m Cash Int (Mezz) $21.6m $22.3m…Read the full answer
HarborTech Services (HTS) – 5-Year LBO Underwriting Analysis Investment Summary Initial Equity Check: $808.8m Calculation: EV ($1,440m) + Fees ($28.8m) - Debt ($660m). Entry Leverage: 5.5x EBITDA ($660m Total Debt). Exit Leverage: ~2.0x EBITDA ($415.7m Total Debt).Read the full answer