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
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