Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
1) Year-by-Year Financial Projections (FY2026–FY2030) Key Inputs at Close (FY2025): Revenue: $900M EBITDA: $120M Purchase Price: 12.0x EBITDA → EV = $1.44B Transaction Fees: 2.0% × $1.44B = $28.8M (equity-funded) Total Leverage: 5.5x EBITDA → Debt = $660M Term Loan: 4.0x → $480M Mezzanine: 1.5x → $180M Equity Required…Read the full answer
HarborTech Services (HTS) – LBO Underwriting Memo Entry & Capital Structure Item Amount FY2025 EBITDA $120.0m Entry Multiple 12.0x Enterprise Value $1,440.0m Transaction Fees (2.0% of EV) $28.8m Total Uses $1,468.8m Term Loan (4.0x, 9.0% cash, 1.0% amort) $480.0m Mezzanine (1.5x, 12.0% cash + 2.0% PIK) $180.0m Sponsor…Read the full answer