Stock-Based Compensation in LBO
Hey guys, I'm wondering how you address stock-based compensation in a take-private? It's no longer relevant as a private company, so do you pay an upfront price to take care of the expense? This is a high-level LBO so I don't need specific details, but just an easy way to make sure I'm accounting for it properly. Thank you!
You don't. The only reason you would care is its a tax deduction you aren't modelling, so you'll be paying slightly more taxes in your model than in reality, but it won't move the needle.
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