INVESTMENT BANKING
FIN 4018
Unit 7: Tutorial Questions & Answers – Precedent Transactions Analysis
1) What is NOT a reason why transaction comps generally provide a higher multiple range
than trading comps?
A. Buyers pay control premiums
B. Buyers often have the opportunity to realize synergies
C. Buyers receive the right to control decisions
D. Transaction comps are more accurate than trading comps
2) What is the correct order for a precedent transaction analysis?
E. Select the universe of comparable acquisitions
F. Benchmark the comparable acquisitions
G. Locate the necessary deal-related and financial information
H. Spread key statistics, ratios, and transaction multiples
I. Determine valuation
