Investment BankingIntermediate
Precedent Transaction Analysis
Deal comps
Valuing a company using multiples paid in past acquisitions of similar firms.
Detailed explanation
Because buyers pay for control, these multiples usually include a control premium and come out higher than trading comps.
Why it matters
Shows what buyers have actually been willing to pay.
Key points
- Includes control premium.
- Older deals may reflect different markets.
- Data can be limited for private deals.
Related terms
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Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.