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 (simplified) 1️⃣ Entry (FY2025) Item Value FY2025 Revenue $900 m FY2025 EBITDA $120 m Purchase price (12×EBITDA) $1 440 m Transaction fees (2 % of EV) $28.8 m Total debt (5.5×EBITDA) $660 m – Term Loan (4.0×EBITDA) $480 m – Mezzanine (1.5×EBITDA) $180 m Equity needed (price + fees…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