Valuation: Comps & Precedents
Why are precedent transactions said to be 'stale' or 'point-in-time,' and how does that affect how you use them?
Model answer
Each precedent reflects the valuation, M&A appetite, and credit/financing conditions of when it closed, not today. In a hot market with cheap debt, buyers pay up; in a downturn, multiples compress.…
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