This post focuses on a significant tax advantage that any entrepreneur, fundless sponsor and lower-middle-market private equity practitioner should be aware of known as Qualifed Small Business Stock (QSBS). </strong>QSBS is an overlooked section of the U.S. tax code that can result in incredible tax savings on capital gains. If a transaction is structured properly, it has the potential to save shareholders millions of dollars in the event of a successful exit (sale of the company).
I recorded the first video for this website in 2013 with a $27 microphone I purchased at Best Buy. Since that time, the technology and software used at ASM has improved significantly, and I thought it was time to update the original recording.
This post includes an Excel template with two examples (available for download at the bottom of this post). The first it labeled “Senior Term Loan,” and the second is labeled “Subordinated Notes.”
One of the challenges you will encounter building monthly debt schedules is the need to calculate and show interest expense in each month, and then reflect the payment of interest at the end of the quarter. This video provides a helpful approach.
This video explains how the =SUM and =OFFSET functions can be combined to write a formula that will sum a specific number of cells. This is especially useful when you are working with monthly data, and showing quarterly and annual periods in a financial model. The video also explains why using the =SUM formula for this purpose can lead to errors.