Why does a precedent transactions analysis typically produce a higher valuation than trading comparables?
- A It includes a control premium paid to acquire the whole company
- B It uses older data
- C It excludes debt
- D It uses different multiples
Answer
It includes a control premium paid to acquire the whole company
Acquirers pay above the market price to obtain control and expected synergies, which trading multiples of minority stakes do not reflect.





