Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Simplified Year-by-Year Cash Flow Table (FY2026–FY2030) Year Revenue EBITDA Cash Interest (Term + Mezz) Cash Taxes Capex ΔNWC FCF After Required Payments Term Loan Balance Mezz Balance 2026 $972.0M $136.1M $64.8M $17.8M $29.2M $0.4M $19.1M $456.1M $183.6M 2027 $1,040.0M $156.0M $63.1M $23.2M $31.2M $0.3M $33.4M $417.9M…Read the full answer
Entry capitalization All figures in $m unless noted. FY2025 EBITDA = $120.0 Entry EV = 12.0x × $120.0 = $1,440.0 Transaction fees = 2.0% × $1,440.0 = $28.8 Term Loan = 4.0x × $120.0 = $480.0 Mezzanine = 1.5x × $120.0 = $180.0 Equity = EV + fees – debt = $1,440.0 + $28.8 – $660.0 = $808.8 Sources & Uses Uses $m Sources…Read the full answer