Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Initial Setup & Equity Calculation Item Calculation Amount ($m) Purchase Price $120m × 12.0x 1,440.0 Transaction Fees $1,440m × 2.0% 28.8 Total Debt ($480m TL + $180m Mezz) 660.0 Initial Equity $1,440 + $28.8 − $660 808.8 Year-by-Year Model (FY2026–FY2030) (All figures in $m, rounded to 1 decimal.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