Why are tax payables considered a debt-like item in an equity bridge (M&A acquisition context)?
I though deferred tax liabilities, being a current liability, would be factored in the DCF through the WC, ultimately affecting EV accordingly (via lower FCFF). Shouldn't it be double counting if we also account for them as a debt-like item?
Deferred tax liabilities are not the same as taxes payable. Taxes payable are taxes that have been accrued that are due at a set known date. DTLs are a temporary difference in tax basis vs accounting basis.
Which one of the two is considered debt-like? and why?
Nulla nostrum maxime officiis voluptatem. Ut expedita corrupti distinctio. Qui ut quis tempore aliquid reiciendis omnis deleniti. Quo delectus iste non qui. Accusamus corrupti est facere dicta aut eos quos. Cupiditate quae sed sapiente a quis ad.
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...