Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services (HTS) — LBO Underwriting Memo Sources & Uses Sources $m Uses $m Term Loan (4.0x) 480.0 Purchase Price (12.0x) 1,440.0 Mezzanine (1.5x) 180.0 Transaction Fees (2.0%) 28.8 Equity (plug) 808.8 Total 1,468.8 Total 1,468.8 Year-by-Year Operating & Debt Schedule ($m) Metric FY2026 FY2027 FY2028 FY2029…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