BizNexus Roundup

Precedent Transaction Valuation

BizNexus

The source provides a detailed, step-by-step guide to Precedent Transaction Analysis (PTA), which is a core corporate finance methodology used to value companies based on past merger and acquisition (M&A) deals. It defines PTA as answering the fundamental question, "What have similar businesses sold for in the past?", positioning it alongside Discounted Cash Flow (DCF) and Trading Comparables as an essential valuation tool. 

The document outlines The Seven-Step PTA Process, including identifying relevant deals, calculating key multiples like EV/EBITDA, and applying the results to estimate a target company's value. Crucially, the analysis explains that PTA reflects a control premium and strategic synergies, making its multiples typically higher than public market valuations. A real-world case study of the Fortis Healthcare Acquisition in India is used to illustrate the application and calculation of deal multiples.

You can read that entire document here: 

https://www.linkedin.com/posts/himanshu-kandoi-17b4a533a_precedent-transaction-valuation-activity-7371820482804805632-7ccR?utm_source=share&utm_medium=member_desktop&rcm=ACoAABGzL5gBDtJNUCsnAPn6tKYpDHZSNFxIWh8

Follow Himanshu Kandoi: https://www.linkedin.com/in/himanshu-kandoi-17b4a533a/

DISCLAIMER: The BizNexus Roundup podcast features AI hosts whose analysis is based entirely on pattern recognition and reports created by actual human experts. While our hosts can process vast amounts of data, they've never actually closed a deal or sat in a boardroom.

Our discussions draw from publicly available sources and expert insights, but we strongly encourage listeners to consult the original documents and reports referenced in each episode for the complete context and analysis. The AI hosts' market predictions and deal assessments, while data-driven, are no substitute for professional human judgment and due diligence.

For actual M&A advice, please consult qualified human experts and always go to the source materials to get the full story.




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