Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Sources & Uses (Entry FY2025) Uses ($m) Sources ($m) Enterprise Value (12.0x $120m) $1,440.0 Term Loan (4.0x) $480.0 Transaction Fees (2.0% EV) $28.8 Mezzanine (1.5x) $180.0 Total Uses $1,468.8 Equity (Plug) $808.8 Total Sources $1,468.8 Entry Equity Check: $808.8m Total Debt: $660.0m ($480m TL + $180m Mezz) 5-Year…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