Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Below is a five-year LBO “quick-and-dirty” model for HTS. All figures in $m. Assumptions (entry FY 2025): • Revenue 900; EBITDA 120 (13.3%); EV = 12.0×120 = 1,440 • Debt = 5.5×120 = 660 (Term Loan 480; Mezz 180); Fees = 2%×1,440 = 28.8 → Equity = 1,440+28.8–660 = 808.8 • Term Loan: 9.0% cash interest; 1.0% amort of…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