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 = $28.8m, paid at close from equity. Total leverage at close = 5.5x EBITDA.Read the full answer
1 – Year‑by‑Year Operating / Debt Table (FY2026‑FY2030) FY Rev ($m) EBITDA ($m) Cash interest – TL ($m) Cash interest – Mezz ($m) Total cash interest ($m) Cash tax 25 % of (EBITDA‑interest) ($m) Capex ($m) ΔNWC ($m) Cash after all charges ($m) Required TL amort ($m) Optional TL pay‑down ($m) Ending TL ($m) Ending Mezz…Read the full answer