Transaction Comparables
Learn to spread transaction comps, including picking the right comp set and computing transaction multiples
Overview
This course covers the strengths and weaknesses of transaction comparables as a relative valuation methodology and is contrasted with trading comparables valuation. Topics covered include considerations in selecting the appropriate transactions, spreading their values and computing the transaction multiples.
- Factors to consider when identifying the universe of comparable transactions
- Difference between trading multiples and transaction multiples
- Public vs. private targets
- Determining a transaction value (spreading a transaction)
- Transaction enterprise value vs. equity value
- Announced vs. close date
- Determining share capital
- Form of consideration
- Buying the entire equity vs. select assets
- Deal dynamics
- How to think about the multiples
- LTM vs. Forward
- Synergized
- What does research say?
- Control premium