Precedent Transactions

A valuation method that looks at the prices paid for similar companies in past M&A deals.

• Transaction Multiples: e.g., EV/EBITDA.
• Control Premium: M&A deals usually include a premium (20-30%) over market price.
• Synergies: Buyers pay more if they can extract operational or financial value.
• Context Matters: Cycle timing impacts multiples.