LBO Model - effective date vs closing date
Trying to get my head around a problem and unable to source a real solution.
In a modelling test scenario, what is the best way to tackle a question where you are given a both the actual closing date and a transaction reference date (the reference date being the most recent FYE for the business). So FYE is Q3-22, and the transaction closes at Q4-22 with a Q3-22 reference date.
Initial thoughts are that this require modelling a stub for the remaining 3 quarters (Q1-23, Q2-23, Q3-23), but in theory would you also be entitled to cashflows from the first quarter but not have the impact of debt expense for that quarter or am I over complicating this? In addition, does anyone know a good template that has a stub built in - the only one I've seen is Macabus which is far overengineered for a typical 3h LBO modelling test.