Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Investment Summary & Entry Economics Item Calculation Value ($m) Entry EBITDA FY2025 Actual 120.0 Entry EV 12.0x EBITDA 1,440.0 Transaction Fees 2.0% of EV 28.8 Total Uses EV + Fees 1,468.8 Total Debt 5.5x EBITDA (4.0x TL, 1.5x Mez) 660.0 Equity Check Uses - Debt 808.8 Debt Structure at Close: Term Loan: $480.0m (9.0%…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