Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Let’s build the LBO model step-by-step using only the provided data. 1. SOURCES & USES (at Close – End FY2025) EBITDA (FY2025): $120m Purchase Price (12.0x): $120m × 12.0 = $1,440m Transaction Fees (2.0% of EV): 0.02 × $1,440m = $28.8m Total Use of Funds: $1,440m + $28.8m = $1,468.8m Debt at Close (5.5x EBITDA): Term…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