In a previous series, we covered trading comparables in depth. Trading comparables (or simply “comps”) are one of the three core valuation methodologies that investment bankers use. In this post, we cover precedent transaction comparables (also called “precedents” or “transaction comps”) – which are also important, especially for an M&A context. Spreading

Why Trading Comps Matter Trading comps are one of the primary tools of the investment bankers - not just a throwaway investment banking interview question. An industry specialist is supposed to know where things are trading and why, as well as what this value insinuates. For junior bankers (analysts especially), a lot of

In previous posts, we addressed the equity and debt components in the enterprise value formula: EV = Equity + Debt – Cash & Marketable Securities + Preferred Shares + Minority Interest + Asset Retirement Obligations + Capitalized Operating Leases + Pension Obligations – Investments (including investments in affiliates, long-term investments) +