Series 79: Step One: Identifying Precedent Transactions

Step One: Identifying Precedent Transactions

At its core, a precedent transactions analysis is premised on the selection and evaluation of the most relevant transactions. When attempting to select those transactions, you should consider several different criteria. These include:

• • Industry sector and financial characteristics. The target company’s business and financial characteristics should be similar to those involved in precedent transactions.
• • Transaction size and value. Transactions that are close in size and value to that being considered are more relevant than those that are not.
• • Transaction-specific charact