Date Issues in LBO Model - Help

Hi all,

Quick beginner LBO question. I've always gotten stumped on dates in LBO models. For example, how would you structure/project the IS and BS projections in a model if the current date is 4/30/2018 and you have the following:

  • Balance Sheet as of 12/31/2017

  • Full year 2018 Budget IS

  • Assume transaction closes 12/31/2018

Do you make the transaction adjustments on the 2017 balance sheet or do you have to project out the 2017 balance sheet to 2018 and then make adjustments?

Also, the first year of income statement projections would be 2019 right? Would 2018B be treated as a historical year?

Thanks so much.

 

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