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
518.51935 New TL: 276.34682 - 86.82747 = 189.51935 Mezz: PIK 194.8377888 * 0.02 = 3.896755776 New Mezz: 194.8377888 + 3.896755776 = 198.734544576 Ending Balances: TL: 189.52 Mezz: 198.73 Total Debt: 388.25 Exit (End of FY2030): Exit EBITDA: 206.6252668 Exit Multiple: 10.5x Exit EV: 206.6252668 * 10.5 = 2,169.5653014…Read the full answer