Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Base-case underwriting (FY2026–FY2030) Assumptions / conventions used All amounts in $m unless noted. Close occurs at end of FY2025; FY2026 is Year 1. Interest is calculated on beginning-of-year debt balances; optional Term Loan paydown occurs at year-end. Term Loan amortization: 1.0% of original $480m TL = $4.8m/yr.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