Glossary
Precedent transactions
Valuing a company by the multiples paid in past acquisitions of similar businesses.
Precedent transaction analysis looks at what acquirers actually paid, so the multiples include a control premium and reflect market conditions at the time of each deal.
Disclosed deal data is patchy for private companies, and multiples from a different point in the cycle may not hold today. It is normally used alongside trading comparables and a DCF.
In Hebrides
The Valuation Suite includes precedent transactions among the methods it weights, with every figure traced to its source.
Valuation Suite