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
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