Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
Summary of transaction math (at close / FY2025) EV (purchase price) = 12.0x * FY2025 EBITDA = 12.0 * $120.0m = $1,440.0m Transaction fees (paid by equity at close) = 2.0% * EV = 0.02 * $1,440.0m = $28.8m Total debt at close = 5.5x * $120m = $660.0m Term Loan = 4.0x = $480.0m (9.0% cash interest, 1.0% p.a.Read the full answer