The Impact of Tax Reform on Financial Models
Understand How to Modify Pitchbook and Deal Models to Reflect Tax Reform
TCJA impacts far more than the headline tax rate reduction. This course shows investment bankers and private equity professionals how the financial models they use to support M&A and LBO transactions need to be revised to reflect new limits on interest expense deductions, bonus depreciation and changes to NOL rules.
Excel Model Template Included: Includes a complete and reusable TCJA-Adjusted Financial Statement Model, DCF and LBO Model Template.
What You'll Learn
Part 1: Financial Statement Model Impacts
- Overview of the Changes in TCJA
- Modeling Bonus Depreciation
- Modeling Interest Carryforward Limits
- Modeling EBIT and EBITDA Tests
- Modeling NOL Limits
Part 2: Valuation Model Impact
- Overview of Tax Reform Impact on Valuation
- Adjusting Free Cash Flows, WACC and Terminal Value Calculations for TCJA
- How to Deal with NOLs and Carryforwards
Part 3: M&A and Private Equity
- Impact on LBO Models
- Impact on M&A Deal Structures
Tax Reform Headlines
Headline 1: Lower Tax Rate
Headline 3: Limit on Interest Deduction
Wall Street Prep’s "The Impact of TCJA on Financial Models" is used at top financial institutions and business schools.
Taught by Bankers
Our instructors are former investment bankers who give lessons real-world context by connecting it to their experience on the desk.
Used on the Street
This is the same comprehensive course our corporate clients use to prepare their analysts and associates.
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This course assumes basic familiarity with financial modeling, LBO and DCF analysis. Students with no prior background in financial modeling should enroll in the Premium Package prior to taking this course.Learn More
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