Can someone explain the balance sheet cash mechanics for an CFDF LBO with existing cash on the balance sheet? In my latest experience, the balance sheet was out of balance by exactly the min cash amount. Any ideas?
| +91 | Cognitive decline | 30 | 9m |
| +55 | Vibe-Working in Finance with AI ? What about you | 34 | 19h |
| +49 | Del | 26 | 2d |
| +44 | PE VP: Thoughts on Quitting with Nothing Lined Up? | 15 | 1h |
| +18 | How do PE funds choose their advisors? | 8 | 21h |
| +18 | Acquisition Deal Structure: More Cash at Close vs. Smaller Equity Rollover in a Holdco | 3 | 3d |
| +17 | Is buyside worth it if most associate programs are 2 and out? | 4 | 4d |
| +13 | Management consulting or munis? | 6 | 4d |
| +13 | How Cooked is Software PE? | 1 | 2d |
| +12 | Indian PE Landscape | 2 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Was it accounted for in the sources?
Did you factor in the min cash when you do cash sweep? In my experience, some people structure the min cash differently (exclude completely vs. include and then subtract before paying down debt). Make sure you follow the flow and hopefully you find the error!
Sounds like min cash wasn't reflected in S&U and / or the out of the box cash position did not equal the min cash and then this flowed through the model so the cash balance you show is always lower by the the min cash amount
Aut cumque et iste voluptatem. Exercitationem corporis debitis ut ducimus sapiente. Repellat quaerat omnis laboriosam ratione sint omnis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...