This one-day Cash Sweep Modelling course will guide participants through best practice techniques for modelling a cash sweep and error-checking techniques.
We set up a hierarchy of a series of debt items and we learn how to model the sequential debt paydown using a ‘cash sweep’ approach. We learn to incorporate both mandated and accelerated debt repayments as well as allocate cash to equity investors subject to covenant thresholds. Best practice modelling techniques are emphasized throughout.
The afternoon session focuses on building models without making errors, and on useful tips and tricks for finding and fixing errors quickly. We start by laying out 10 integrity modelling rules, which teach participants how to minimize the risk of creating errors in models. We then proceed to examine techniques to correct a non-balancing balance sheet. The last part of the session is dedicated to dealing with circular formulas and related problems. We use a series of financial models to allow participants to practice applying the error-checking techniques for themselves.