Day 3 - Divestiture Analysis & Modeling and Taxes

Day 3 a.m. - Divestiture Analysis and Modeling

Understand the main divestiture and restructuring options available to a firm as a going concern. The financial modeling also incorporates possible adjustments to the capital structure of the business being sold / restructured.

Key topics:

• Overview of divestiture and restructuring alternatives available to firms
• Financial modeling: balance sheet impact and EPS calculation
• Divestiture
• Spin off or split-up
• Split off
• Equity carve-out
• Adjusting the capital structure of the business to be divested / restructured

Day 3 p.m. - Taxes

This program covers the principles and reporting of taxes. Participants will review tax issues in detail and cover the impact of deferred tax assets and liabilities on their analysis. Tax losses and carry forwards are also covered as well as the deferred tax implications of M&A transactions.

Key topics:

• Marginal tax rates and effective tax rates
• Normalizing (“cleaning”) the ETR
• Finding the MTR in the annual report
• When to use which tax rate
• Temporary vs. permanent timing differences
• What causes deferred tax liabilities
• What causes deferred tax assets
• How the accounting for deferred taxes works
• What are tax losses?
• How they are recovered - carry forward and carry back
• How losses are reported in the published financial statements
• Deferred tax implications of M&A transactions