Hi DCF_king, don't worry, the WSO Monkey Bot is here.... I'm hoping one of these links will help find your answer:

  • Circular references in LBO models circular references, but it seems to be the base of any lbo model, and I can't see where they come ... Hi all, I have a problem with lbo models, I don't understand how they involve circular ... what I am missing that would introduce a circular reference in this model please? (not that I love ...
  • 2 Layers of Debt (Circular Reference Modeling Question) Have a fairly intricate model with plenty of moving parts already. Set a senior and subordinate ... reserves. The model calculates well enough when I set iterations to i.e. 200- but is there are way to make ... it operate faster without changing the iteration count? would like to hear some opinions ...
  • LBO model taking too long to converge to run faster without macros? LBO Model Question ... I built an lbo model that's balanced and working okay, but it's taking a long time to ... it still takes ~4,000 iterations to get through all the circular references. Any advice to get this ...
  • Circular Reference in LBO Model Undergraduate student here working on replicating the illustrative LBO Model in Rosenbaum and ... Pearl's Investment Banking book as practice. I'm having issues with the circular references- the ... interest expenses back to the income statement, but whenever I complete the circular reference, I'm ...
  • LBO model- Few questions they want to, and why? 2) I was having a hard time including interest payments without a circular ... A few questions about LBO 's. 1) Do sponsors refinance existing debt because they have to or ... reference, is there a common way around this? 3) In general, is the adjusted goodwill added to the new ...
  • EXCEL- Modeling Interest Coverage into initial Debt / Loan Amount solver to calculate loan fees and total sources/uses in a circular reference way for total loan amount, ... Hey all, I am looking at a model from a more senior employee at my company, and am trying to be ... able to model the same way. This model has to do with a value add real estate property. The big problem ...
  • Two layers of circular debt a development model? I can share my models via DM. Thanks, circular debt development LBO Real Estate ... two layers of circular debt in a development model. I've asked the guys at the office but they ... modeling skills are from my perspective pretty good, I've learnt a ton from the senior guys at my ...
  • More suggestions...

I hope those threads give you a bit more insight.

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

If you calculate interest expense using beginning debt balance rather than average of beginning and ending debt balance, I am fairly certain that will eliminate circularity, but to be honest I’ve never tried to build a non-circular model so I’m not sure if there are other inherent circularities in an LBO model outside interest calculation

 

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