Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Transaction Setup & Sources/Uses (FY2025 Close) Entry Metrics: FY2025 EBITDA: $120m Purchase Price (EV): $120m × 12.0x = $1,440m Transaction Fees: $1,440m × 2.0% = $28.8m Total Uses: $1,468.8m Sources of Capital: Term Loan (4.0x): $120m × 4.0 = $480.0m Interest: 9.0% Cash + 1.0% Amortization Mezzanine (1.5x): $120m ×…Read the full answer
1 – Year‑by‑Year Operating / Debt Table (FY2026‑FY2030) FY Rev ($m) EBITDA ($m) Cash interest – TL ($m) Cash interest – Mezz ($m) Total cash interest ($m) Cash tax 25 % of (EBITDA‑interest) ($m) Capex ($m) ΔNWC ($m) Cash after all charges ($m) Required TL amort ($m) Optional TL pay‑down ($m) Ending TL ($m) Ending Mezz…Read the full answer