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Financial Modeling Revolver

What is a Financial Modeling Revolver?

A financial modeling revolver is a revolving credit facility that automatically funds any cash shortfall in a model. It is especially common in leveraged buyout (LBO) models and other types of models build in investment banking and private equity. The revolver requires using a circular reference in Excel so it’s important to have iterative calculations turned on. CFI’s LBO modeling course covers how to build this functionality into a model.

 

Financial Modeling Revolver

Additional Questions and Answers

CFI is the official global provider of financial modeling and valuation analyst FMVA Designation. CFI’s mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way.

In order to become a great financial analyst, below are some additional questions and answers for you to explore further:

  • What is are the types of financial models?
  • What is sensitivity analysis?
  • What is bookkeeping?
  • What are the most common valuation methods?

Example Excel Model

Below is a screenshot from one of CFI’s online analyst training and certification courses, offered 100% online.

To learn How to Build an Excel Model step-by-step, click on the image below.

Analyst Certification Program