Precedent Transactions and Discounted Cash Flow
Free FINRA Series 79 (Investment Banking Representative) lesson in Collection, Analysis and Evaluation of Data. 19 min read, ~2,854 words.
Precedent transactions value a target on multiples paid in completed M&A deals, screened by industry, size, timing, and structure. Acquisition multiples exceed trading multiples by a control premium, typically 20% to 40% over the unaffected price. Strategic buyers pay more than financial buyers because they capture synergies; financial buyers are...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- A7
- A8
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