Currently building an LBO model and struggling to solve for two sets of circularity in the model. The model includes a cash sweep on the TLA + TLB, and interest is calculated based on average balances (thus creating the initial circularity). Where the model is now running into problems is that I built out a detailed U.S. tax schedule including the disallowed interest expense carryforward. The calculated interest links into this creating a 2nd circularity as tax affects cash available and cash available affects interest expense.
Any tips on building this without overriding the logic. Current thought is to just calculate interest off opening balances for tax purposes, meaning the model will be slightly off, but would like to hear any solutions that can keep both circularities in.