Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services LBO Underwriting Task 1: Year-by-Year Financial Projections FY Revenue EBITDA TL Interest Mezz Interest Total Interest Taxable Income Cash Taxes Capex ΔNWC FCF After Debt Service End TL End Mezz Total Debt 2026 972 136.1 39.6 14.4 54.0 82.1 20.5 29.2 3.6 48.8 396.0 183.7 579.7 2027 1,039 155.9 35.6…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