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) Year Revenue ($m) EBITDA ($m) EBITDA Margin Cash Interest ($m) Cash Taxes ($m) Capex ($m) ΔNWC ($m) Free Cash Flow ($m) Term Loan Ending ($m) Mezz Ending ($m) 2026 972.0 136.1 14.0% 57.6 19.6 29.2 4.4 25.3 468.0 198.0 2027 1,039.4 155.9 15.0% 55.3 25.2 31.2 4.6 39.8…Read the full answer
We need to build a simplified year-by-year table FY2026-FY2030. First, compute initial purchase price: EBITDA FY2025 = $120m. Purchase price = 12.0x EBITDA = 12 * 120 = $1,440m (enterprise value). Transaction fees = 2.0% of EV = 0.02 * 1440 = $28.8m, paid at close from equity. Total leverage at close = 5.5x EBITDA.Read the full answer