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
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