I'm now working on the simple lbo model for uni competition. But I tried several times that the ending balance of the debt still be negative. Should I adjust it, if so, how?
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if the model is correctly done and is balanced at the pro-forma year this means that you used more capital than you have either on working capital, debt interests or capex so you will have to lower one of those in the years that u screwed up the B/S.
?? You expect the balance sheet to balance no matter what you do with cash flow? ; say like setting capex at 100% of revenue
Perhaps you need to read the original question again. He specifically said the debt balance goes negative, which means he didn't have a min function implanted into the model to capture the appropriate amount of the last amort payment.
You're right. I imagined the revolver was "leaking out"
If I'm understanding your question, it just means that you're cash flow available for debt repayment is greater than the beginning debt balance (assuming you use all available cash to pay down debt).
To get past this problem, you can use a simple MIN function on the optional repayment line.
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