I'm stuck on part 3 of the LBO modeling.
It says "Ensure that the DCF properly handles purchase accounting adjustments (e.g., double-check the Cash Taxes on EBIT calculation)"
What do i need to change in my DCF model?
Much appreciated.
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Possible Solution
I completed DealMaven Level 2 a while back and after quickly referencing my model, I think Part 3 is suggesting that on the line "Less: Taxes on EBIT" that you make sure you are adding back "Depreciation of PP&E Stepup" from the Cash Flow Stmt.
Hope that helps...
THANK YOU SO MUCH MASEMRDER
Hey, thanks so much.
I have one more question hoping you could answer.
The last two question of quiz 3 on level 2 asked which one of those is (a) deal killer(s). how do you know? i've already submitted my answers and i got them wrong.
don't have access
I don't have access (or can't seem to log in for some reason) anymore, so I'm not sure what the question(s) is (are)...I only have my completed models saved. Not sure how much I can help, but let me know...
Well, it seems like i cant
Well, it seems like i cant access the questions too cuz i've already submitted my answers. thanks tho. I think the question is that what are the factors that would "kill the deal." meaning how do we know (from looking at the model) if the deal should not go through or not.
thanks. much appreciated.