Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
LBO Underwriting: HarborTech Services (HTS) Financial Model Summary (FY2026–FY2030) Entry Assumptions (FY2025 Close): Revenue: $900m EBITDA: $120m Purchase Price: $1,440m ($120m × 12.0x) Debt: $660m (TL $480m / Mezz $180m) Equity Check: $780m (Purchase) + $28.8m (Fees) = $808.8m Debt Terms: Term Loan (TL): $480m @ 9%…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