Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Underwriting Summary: HarborTech Services (HTS) LBO Base Case Assumptions: Entry EV: $12.0x FY2025 EBITDA = $1,440M Transaction Fees: 2.0% of EV = $28.8M Total Consideration: $1,468.8M Debt: 5.5x EBITDA = $660M (Term Loan: $480M, Mezzanine: $180M) Equity: $808.8M Exit: FY2030, 10.5x EBITDA, 1.0% exit fees, Mezzanine…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