Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Simplified LBO Model (FY2026–FY2030) Entry Metrics: Purchase Price: $1,440m ($120m * 12.0x) Transaction Fees: $28.8m ($1,440m * 2.0%) Equity Contribution: $312.8m (Total Price + Fees - Total Leverage: $1,440m + $28.8m - $120m*5.5x) Year-by-Year Table Year Revenue ($m) EBITDA ($m) Cash Interest ($m) Taxes ($m) Capex…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