Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
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
HarborTech Services LBO Underwriting Task 1: Year-by-Year Financial Projections FY Revenue EBITDA TL Interest Mezz Interest Total Interest Taxable Income Cash Taxes Capex ΔNWC FCF After Debt Service End TL End Mezz Total Debt 2026 972 136.1 39.6 14.4 54.0 82.1 20.5 29.2 3.6 48.8 396.0 183.7 579.7 2027 1,039 155.9 35.6…Read the full answer