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.