Precedent Transactions
Historical M&A deal multiples used as a valuation reference for a target by comparing what acquirers HAVE paid for similar businesses. The third pillar of valuation alongside trading comps and DCF, and the noisiest of the three because precedent data bundles strategic vs financial buyer types, vintage effects, synergy assumptions, and control premiums into a single multiple. Best sourced from SDC Platinum, SEC filings (8-K, proxy, S-4), and Bloomberg M&A; should be re-bucketed by buyer type, vintage, and deal size before computing a median.
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Ambiguity Aversion · Anchored Assumption · Asset Beta · Bank ROE Spread · Banker Pitch Deck · Beta
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