Precedent Transaction Valuation Analysis

Another path to value a corporation is the precedent transactions method. Using this method, you compile data on comparable transactions that have occurred and compare them to the transaction you are working on. For example, if I were working on a deal with American Express acquiring Open Table, I would review other American Express acquisitions and other acquisitions of the same variety. The criteria used to compare these transactions are relatively alike to that of the comparable companies method. Like the comparable companies method, it is an advantage that the precedent transactions method uses public data More

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