What is best practice for dealing with timing issues?
For example, my LTM period is June 30, 2010. Deal is expected to close Oct. 1, 2010. So my stub period is October 1, 2010 through the end of year, correct? What do I do with the June 30 to Sept. 30 period then? Do I project this based on Wall Street estimates and use the resulting ending balance sheet as my starting point for PF Transaction adjustments? Or do I use Actual 6/30/10 ending BS as my starting point for PF Transaction adjustments?
And that begs the next question... so I've now got Q1 and Q2 of 2010 as actuals, and Q3 and Q4 of 2010 as projections... with the end of Q3 being the closing date... I've never seen a model with the dates going across the top broken into "Actual", "Projected - Pre-Close" and "Projected Post-Close"
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