Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services (HTS) – 5-Year LBO Underwriting 1. Sources & Uses (Close FY2025) Uses Amount ($m) Sources Amount ($m) x EBITDA Enterprise Value (12.0x) 1,440.0 Term Loan (9% cash, 1% amort) 480.0 4.0x Transaction Fees (2.0%) 28.8 Mezzanine (12% cash + 2% PIK) 180.0 1.5x Total Uses 1,468.8 Equity 808.8 5.5x Total…Read the full answer
Simplified Year-by-Year Cash Flow Table (FY2026–FY2030) Year Revenue EBITDA Cash Interest (Term + Mezz) Cash Taxes Capex ΔNWC FCF After Required Payments Term Loan Balance Mezz Balance 2026 $972.0M $136.1M $64.8M $17.8M $29.2M $0.4M $19.1M $456.1M $183.6M 2027 $1,040.0M $156.0M $63.1M $23.2M $31.2M $0.3M $33.4M $417.9M…Read the full answer