Net income pro forma = Net income (Buyer) + Net income (Target) - Synergies post tax - Cost of debt
I have seen this formula in order to calculate the EPS pro forma but I don't get why the cost of debt is not post tax and the meaning behind if it's not a mistake.
| +195 | Who Killed Wall Street | 64 | 2h |
| +176 | Worlds Worst MDs Competition (2026 Edition) | 33 | 13h |
| +164 | As Lehman people reconvene at UBS, Barclays needs to hire (2023) | 23 | 3d |
| +120 | Lindsay Clancy - Thoughts from A2 | 22 | 15h |
| +94 | Day at Macquarie | 12 | 4d |
| +57 | How bad did I mess up | 11 | 11h |
| +43 | EB (EVR/CVP/LAZ) vs MBB (Bain/BCG) | 21 | 7h |
| +34 | Most technical groups? | 18 | 20h |
| +29 | JPM SMALL CAP or WF/JEF/RBC Coverage group | 13 | 4d |
| +22 | NYC Wall Street Run Club | 2 | 6h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Should be post tax and reflect cost of incremental debt in case you raise debt (so other than existing target debt which you refi) and any delta in cost of refinanced debt.
Vel aspernatur impedit molestias minus id explicabo omnis. Consequatur nesciunt unde est. Autem sit quis quas voluptatem at et necessitatibus. Et cumque voluptatum et.
Nisi unde quia consequuntur est eligendi. Voluptates aut inventore fuga illo alias. Dolore labore ullam molestiae magni autem facere deserunt voluptatum. Libero atque reprehenderit quae dolorem adipisci aut. Aut soluta ut nobis reprehenderit voluptatem sed pariatur. Qui ut cupiditate labore at non quia et.
Cumque consequatur sapiente eaque nemo quia. At minima accusantium aut architecto dolorem voluptates ea. Facere possimus in molestiae. Autem sit praesentium et laborum consequuntur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...