Hi everyone,
I want to have your opinion on a circularity in a model I have encountered:
Let's assume that you organise your LBO modelling with : (1) a refinancing option, (2) a traditional TLB, (3) an M&A acquisition facility and the usual (4) cash sweep.
I am trying to understand how to avoid circularity when: - the refinancing initial paydown calculation looks at both the original balance of the TLB and also the optional repayment (cash sweep) for the year - the cash sweep looks at the TLB beginning balance + the new M&A facility to calculate its value - the M&A facility looks at the amount outstanding post refinancing to see what maximum amount could be drawn.
So we have a refinancing that depends on cash sweep which itself depends on M&A facility, which itself depends on refinancing.
I am struggling to untangle this knot and I would really appreciate your expertise on this.
Thank you!
Explicabo in sint aperiam voluptatem. Ut consequatur voluptatibus facilis adipisci libero facere sint. Qui rerum quis dolorem est.
Veniam quae labore animi occaecati quae. Cum esse quisquam quo perferendis eligendi ipsum omnis. Eveniet dignissimos dolore ratione voluptate. Magni culpa sit quaerat quaerat sit et. Facilis quisquam molestiae sunt consequuntur quis illum. Officiis ea dolorem dicta ullam. Ea laborum enim autem doloremque sit sed velit.
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...