LBO Cash Taxes

What calculation do you use for your LBO models?

Is the most recent form:

EBITDA - CapEx - D&A - Interest Expense (capped at 30% of EBITDA (through 2021) or EBIT (2022 onward) = Taxable Income

 

TI x state/fed?

 

For US Corp

Comments (5)

 
  • Prospect in IB-M&A
Aug 26, 2020 - 10:40pm

Your post is confusing... capex isn't even an income statement line item.

Just calculate taxable income (book) as EBIT - Interest, then apply the effective tax rate on that total amount to get book taxes. Marginal tax rate is only on next dollar basis.

The above is GAAP so get to cash taxes you need to add-back D&A that wasn't tax deductible as well as other non-recurring adjustments that weren't tax deductible to get the cash tax basis and then apply the tax rate to get cash taxes.

 
Aug 27, 2020 - 12:24pm
Start Discussion

Popular Content See all

The lighter side of IB! (Hopefully)
+44IBby 1st Year Analyst in Investment Banking - Mergers and Acquisitions">Analyst 1 in IB-M&A
Making the first move as a woman?
+12OFFby Intern in Investment Banking - Generalist">Intern in IB - Gen
Is Finance the back office of society?
+11OFFby 1st Year Analyst in Investment Banking - Industry/Coverage">Analyst 1 in IB - Ind
Where do the 'bodies' of PE go?
+9PEby 1st Year Analyst in Investment Banking - Generalist">Analyst 1 in IB - Gen
Fucked up a slide presented to a client
+9IBby 1st Year Analyst in Investment Banking - Industry/Coverage">Analyst 1 in IB - Ind

Total Avg Compensation

October 2020 Private Equity

  • Principal (6) $693
  • Director/MD (14) $640
  • Vice President (54) $362
  • 3rd+ Year Associate (60) $272
  • 2nd Year Associate (112) $246
  • 1st Year Associate (242) $222
  • 3rd+ Year Analyst (23) $162
  • 2nd Year Analyst (52) $141
  • 1st Year Analyst (152) $118
  • Intern/Summer Associate (17) $66
  • Intern/Summer Analyst (168) $60

Leaderboard See all

1
LonLonMilk's picture
LonLonMilk
98.4
2
Jamoldo's picture
Jamoldo
98.3
3
Secyh62's picture
Secyh62
98.2
4
CompBanker's picture
CompBanker
97.9
5
redever's picture
redever
97.7
6
Addinator's picture
Addinator
97.6
7
NuckFuts's picture
NuckFuts
97.5
8
bolo up's picture
bolo up
97.5
9
frgna's picture
frgna
97.5
10
Ricky Rosay's picture
Ricky Rosay
97.3