Chris Reilly, a finance professional with a diverse background spanning consulting, corporate finance, and private equity. Chris gained invaluable experience during the 2008 financial crisis, working on high-profile bankruptcies at FTI Consulting. His curiosity led him to delve into private equity, where he honed his skills and eventually founded Financial Modeling Education. With over 85,000 LinkedIn followers, Chris is a respected figure in finance, known for his practical insights and expertise in financial modeling and FP&A. Whether for junior analysts or seasoned CFOs, Chris offers invaluable guidance to navigate the complexities of finance. Book him today to elevate your audience’s financial acumen.
Episode Highlights Here:
Chris
effectively, what we would be doing is we would look to either do a stock sale or an asset sale, because there are some tax advantages to doing an asset sale where you can get the kind of a step up and basis for the fixed assets. And then you get an incremental depreciation over the life of the deal. But then sometimes you’re also creating deferred tax liabilities or deferred tax assets, which can be a little bit complicated from a modeling and kind of realization perspective.
Brett
So I’m curious about your experience. What you find is the biggest frustration when it comes to exiting these highly appreciated, you know, businesses, these m&a, mergers and acquisitions are happening all this tax, right? What is your thought process when it comes through that and or, you know, 1031 exchanges, or the different things that are associated with tax?
Chris
Well, I’d say in truth, you know, I am not a tax professional. And so when I was heavy on the buy side, and during the PE work, we would often bring in a professional to really analyze the tax implications of the deal, because on the business side, I was more about the p&l on the balance sheet modeling. And then they would the tax pros, as well as the legal team would kind of help us optimize the structure. But effectively, what we would be doing is we would look to either do a stock sale or an asset sale, because there are some tax advantages to doing an asset sale where you can get the kind of the step up and basis for the fixed assets, and then you get an incremental depreciation over the life of the deal. But then sometimes you’re also creating deferred tax liabilities or deferred tax assets, which can be a little bit complicated from a modeling and kind of realization perspective. But overall, what you’re really trying to do is just optimize the company so that it is tax efficient on exit. And this is going a little bit beyond my expertise. But a lot of the entities that we would set up would be tax efficient in such a way that at least the LPS came out with the most tax efficient strategy. And that was sort of vary based on where the company was located, or based on the structure of the deal. So I wish I was a little bit more of an expert on that. But I always had, I would say expert help when it came to putting the tax structure together.
Brett
So that’s why I encourage you to build a capital gains tax exit plan and to build a dream team for not only the building of your company and the modeling and the projections and the cash flows and everything else there and properly. You know pricing your company based upon key financial models, but also when you go to exit and that’s why we wrote the book called Building a capital gains tax exit plan. It’s all about exiting multimillion dollar assets, deferring the capital gains tax and eliminate the estate tax because it’s painful if you work so hard to build that company for 510 1520 years, just to have a lot of it wiped out with tax you want to make sure you have a plan in place, go to capital gains tax solutions.com Or check out the book on Amazon building a capital gains tax exit plan.
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About Chris Reilly
Chris Reilly is a finance professional with a background in consulting, corporate finance, and private equity. His journey in the world of finance began with a historic experience, working on the Lehman Brothers bankruptcy during the 2008 financial crisis. This was one of several high-profile bankruptcies Chris was exposed to early in his career when he was working for FTI Consulting, one of the most reputable management consulting firms in the world.
Following his consultancy tenure, Chris Reilly took on a Senior Analyst role in FP&A and Treasury at Hilton Worldwide. Hilton, which was owned by Blackstone at the time, gave Chris direct exposure to the world of “private equity,” and he simply had to know more.
Having a “nontraditional background” for private equity, Chris researched the industry and taught himself to build LBO financial models in his spare time, which ultimately helped him break into middle-market private equity in Denver, where he honed his expertise for nearly a decade.
In 2020, he turned his entrepreneurial dream into reality by founding Financial Modeling Education, a company that teaches finance professionals to build advanced financial models for FP&A and Private Equity in a relatable, down-to-earth style.
In addition to his education work, Chris has established himself as an influential figure in finance, having over 85,000 followers on LinkedIn, where he shares valuable insights and practical advice to help finance professionals excel in their careers.
For finance enthusiasts ranging from junior to senior positions in finance, including CFOs and C-suite executives, Chris Reilly is the go-to expert. With his deep knowledge of financial modeling, private equity, and FP&A, he is uniquely qualified to provide valuable insights and guidance on these often nuanced and misunderstood topics.
Whether your audience is new to the world of finance or comprised of seasoned professionals, Chris’s expertise and experience make him a perfect fit for podcasts and discussions, where he can share his wealth of knowledge and help simplify the intricate landscape of finance.
Don’t miss the opportunity to learn from Chris and elevate your audience’s financial acumen to new heights. Book him today and tap into his wealth of expertise.
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