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 table (FY2026-FY2030) Year Revenue (m) EBITDA (m) Cash Interest (m) Cash Taxes (m) Capex (m) ΔNWC (m) FCF after Debt (m) Ending Debt (m) 2026 976 136.64 36.00 13.66 29.28 -4.88 49.06 450.00 2027 1,055.20 147.73 33.60 14.77 31.65 -5.26 66.12 383.88 2028 1,134.96 181.59 30.72 18.16 33.85 -5.66 88.98…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