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How to Estimate Target Value: 19 Questions to Ask

M&A Leadership Council

The Art of M&A® / Due Diligence: Precedent Transactions Analysis An excerpt from The Art of M&A, Fifth Edition: A Merger, Acquisition, and Buyout Guide by Alexandra Reed Lajoux Editor’s Note: A growing number of M&A professionals are pursuing the Certified M&A Specialist , or CMAS ® credential.

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How to Estimate Target Value: 19 Questions to Ask

M&A Leadership Council

The Art of M&A® / Due Diligence: Precedent Transactions Analysis An excerpt from The Art of M&A, Fifth Edition: A Merger, Acquisition, and Buyout Guide by Alexandra Reed Lajoux Editor’s Note: A growing number of M&A professionals are pursuing the Certified M&A Specialist , or CMAS ® credential.

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Valuation Using Multiples—What Is It and How Does It Work? Core Ideas Explained

Valutico

The first is comparable company analysis (CCA), also known as “comps”. The second is precedent transaction analysis, known as “precedents” and also called a comparable transaction analysis (CTA). Not all of the necessary data is publicly available when conducting a precedent transaction analysis.

EBITDA 52
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Your Guide to Valuing a Company Using the Multiples Approach

Valutico

The first is comparable company analysis (CCA), also known as “comps”. The second is precedent transaction analysis, known as “precedents” and also called a comparable transaction analysis (CTA). Not all of the necessary data is publicly available when conducting a precedent transaction analysis.

EBITDA 52
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How can I learn to valuate a company?

Equilest

Market-Based Valuation Methods Comparable Company Analysis: This method involves comparing the target company's financial metrics and valuation multiples with similar publicly traded companies to arrive at a reasonable valuation.

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Comparable Company Analysis – Pros and Cons

Valutico

Can be used in conjunction with other valuation methods: CCA can be used in conjunction with other valuation methods such as discounted cash flow (DCF) analysis or precedent transactions analysis (PTA) to provide a more comprehensive valuation of a company.

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5 Reasons Why Business Valuation Software is a Game-Changer for Mergers and Acquisitions

Equilest

These tools include discounted cash flow (DCF) analysis, comparable company analysis (CCA), precedent transaction analysis (PTA), and many others. These advanced valuation techniques provide more accurate and comprehensive valuation results, enabling M&A professionals to make informed investment decisions.