Reply To: What are the advantages of comparable transactions in the valuation for M&A?

#37176
Rohit Singh
Participant

Post being part of multiple M&As and PE deals, comparable transactions are the major (sometimes only) method used by the acquirers. Its just like you going to buy a house- the preferred method is looking at the most recent real estate transactions on $/sqft in that area to decide what to pay to the seller.

As most businesses are funded by combination of equity/ debt, EV/EBITDA should be used for comparable transactions. EV and EBITDA overcomes capital structure issues and also measures a company using profitability ( EBITDA) indicators.

Are you sure you
want to log out?

Request a Brochure

Request a Brochure

Contact us to discuss your goals and needs!

Contact us to discuss your goals and needs!

Book a Demo

Book a Demo

Contact us to discuss your goals and needs!

Contact us to discuss your goals and needs!