Module VI· Revolver & Cash Plug MechanicsAdvanced
Question

How do you treat revolver sizing in bid-defense models?

Answer

In bid-defense or acquisition financing models, revolver sizing should cover seasonal working capital, integration cash costs, downside underperformance, and minimum liquidity. It is not just a plug for day-one funding. Show peak revolver draw, availability, covenant headroom, and liquidity under downside cases.