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The Impact of Tax Reform on Financial Models

$199 Add to Cart
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The Impact of Tax Reform on Financial Models

  •   36 Lessons
  •   2h 46m
  •   82,168 Students

Understand the impact of TCJA (2017 Tax Reform) on DCF, LBO, M&A and Financial Statement models that investment bankers and private equity professionals use to analyze transactions

$199 Add to Cart   Training a Team?
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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.

This course is used to train new hires at:

What You Will 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

Course Samples

Course Extras

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.

Free Unlimited Access to the WSP Support Center

Receive answers to questions, free downloads, and more from our staff of experienced investment bankers.

Prerequisites

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

Course TOC

1. TCJA Introduction Video, 1:14
2. Course Downloads Files
3. Tax Reform Headlines Video, 4:22
4. Headline 1: Lower Tax Rate Video, 3:12
5. Headline 2: Bonus Depreciation Video, 6:26
6. Bonus Depreciation: Model Impact Video, 12:56
7. Headline 3: Limit on Interest Deduction, Part 1 Video, 4:02
8. Calculating EBITDA and EBIT Video, 1:41
9. Limit on Interest Deduction: Model Impact Video, 5:51
10. Interest Carryforward Video, 3:55
11. Connecting the Carryover Schedule to the Model Video, 4:35
12. Headline 3: Limit on Interest Deduction, Part 2 Video, 1:20
13. Headline 4: NOL Limits Video, 1:58
14. NOL Limits: Model Impact Video, 8:40
15. Putting it Together: Tax Savings vs Pre-TCJA Video, 6:26
16. Tax Reform's Impact on Valuation Video, 4:11
17. Tax Reform's Impact on the Stage 1 DCF Video, 3:50
18. Tax Reform's Impact on WACC Video, 1:32
19. Tax Reform's Impact on Terminal Value Video, 3:53
20. Normalizing Terminal Year Cash Flows Video, 3:59
21. Exit Multiple Requires No Change Video, 0:24
22. Dealing with NOLs and Carryforwards Video, 2:00
23. How to deal with NOLs Video, 5:08
24. How to Deal with Carryforwards Video, 13:14
25. Putting it Together: NOLs and Carryforwards Video, 1:43
26. Summary: Tax Reform's Impact on the DCF Model Video, 2:08
27. Tax Reform's Impact on the LBO Video, 5:33
28. Tax Reform's Impact on the LBO: Getting into the Model Video, 8:55
29. Tax Reform's Impact on Deal Structuring Video, 10:50
30. Tax Reform's Impact on M&A Video, 16:55
31. Putting it Together: Tax Reform's Impact on M&A Video, 3:18
32. Q&A: TCJA Impact on Valuation Video, 6:46
33. Q&A: Handling the Remainder of Bonus Depreciation Video, 0:38
34. Q&A: EBITDA/EBIT Toggle Video, 0:44
35. Q&A: What Happens to Carryover if Tax Expires? Video, 1:04
36. Q&A: Tax Reform's Impact on Merger Modeling Video, 1:56

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