Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Year-by-Year Projection (FY2026–FY2030) Entry Metrics: EV: $1,440m (12.0x FY2025 EBITDA $120m) Debt: $660m (Term $480m + Mezz $180m) Equity Check: $808.8m [ = (EV − Debt) + Fees = ($1,440 − $660) + (2.0% × $1,440) ] Initial Investment (t=0): $808.8m ($m) FY2026 FY2027 FY2028 FY2029 FY2030 Revenue 972.0 1,040.0 1,102.4…Read the full answer
HarborTech Services (HTS) – LBO Underwriting Memo Entry & Capital Structure Item Amount FY2025 EBITDA $120.0m Entry Multiple 12.0x Enterprise Value $1,440.0m Transaction Fees (2.0% of EV) $28.8m Total Uses $1,468.8m Term Loan (4.0x, 9.0% cash, 1.0% amort) $480.0m Mezzanine (1.5x, 12.0% cash + 2.0% PIK) $180.0m Sponsor…Read the full answer