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?
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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
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