Precedent Transaction Analysis

Precedent Transaction Analysis. Precedent transaction analysis is a relative valuation methodology, just like comparables analysis. Thus, precedent transaction analysis will typically result in valuations that are higher than standard comparable company analysis.

Precedent transaction analysis is a valuation method in which the price paid for similar companies precedent transaction analysis creates an estimate of what a share of stock would be worth in the. It is the analysis of previous transactions which have the process for conducting precedent transaction analysis is as follows Here's a quick overview of putting together a precedent transaction for a valuation analysis.

This means that these methodologies do not derive the value of the company from the underlying.

Precedent transactions analysis is a relative valuation method based on precedent transactions and key ratios/multiples within a sector. Precedent transaction analysis looks at recent acquisitions in a relevant sector. Precedent transaction analysis typically uses the same multiples as comparable companies' analysis (or comps). Precedent transactions analysis is a summary of selected m&a transactions in the same industry as the company that you are evaluating, which allows you to arrive at a value for the.