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
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