Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services (HTS) – 5-Year LBO Underwriting (FY2026–FY2030) All figures in $ millions. Rounded to 1 decimal for clarity. 1. Year-by-Year Operating & Debt Schedule (FY2026–FY2030) ENTRY (FY2025 Close) Revenue: $900m EBITDA: $120m Purchase Price: 12.0x $120m = $1,440m Transaction Fees: 2.0% × $1,440m = $28.8m…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