LBO Transaction Fees - Impact on P&L?
Hi all -
With un-amortizable transaction fees (e.g., M&A, legal) directly hitting equity via retained earnings, what does it mean for P&L impact? Would it be considered a tax-deductible expense flowing through net income, or would it be below the line post net income in the retained earnings build?
It should hit the P&L but should be excluded from any gearing/incentive formulas as it is non-recurring.
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