Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services – 5-Year LBO Sources & Uses EV = 12.0x × $120m = $1,440.0m; fees 2% = $28.8m Term Loan (TL): 4.0x = $480.0m @ 9.0%; Mezz: 1.5x = $180.0m @ 12% cash + 2% PIK Sponsor equity = $808.8m Annual Model ($m) FY26 FY27 FY28 FY29 FY30 Revenue 972.0 1,040.0 1,102.4 1,157.6 1,215.4 EBITDA (margin) 136.1 (14%)…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