Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Entry & Capital Structure (End FY2025) Item Calculation Value ($M) Enterprise Value 12.0x × $120M EBITDA 1,440.0 Term Loan 4.0x × $120M 480.0 Mezzanine 1.5x × $120M 180.0 Transaction Fees 2.0% × EV (equity-funded) 28.8 Equity Invested EV – Debt + Fees 808.8 LBO Model Summary (FY2026–FY2030) All values in $M.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