Precedent transaction analysis
ProValues a company from the multiples of comparable transactions: deal EV over last-twelve-months sales, EBITDA and EBIT of the acquired company, down to an equity value range and a value per share.
- 6 sheets
- 3 LTM multiples, quartiles
- Deals excluded without deleting them
Method
For each deal, the multiple is transaction EV (on a 100% basis) divided by the LTM sales, EBITDA or EBIT of the acquired company at the deal date. Three multiples are computed: EV/Sales, EV/EBITDA and EV/EBIT.
A deal whose "Include" column is 0 is shown as "excluded" and drops out of the statistics without being deleted. A multiple is "n.m." when EV or the metric is not positive, and it is dropped from the statistics as well.
For each multiple, the workbook gives min, 1st quartile, median, mean, 3rd quartile, max and count kept. Quartiles rely on Excel's QUARTILE function, with inclusive linear interpolation.
The 1st quartile, median and 3rd quartile are applied to the target's LTM metric: EV = multiple × metric, equity = EV − net debt. Deal multiples embed a control premium, so the result is a control value.
The primary multiple, picked by its number from 1 to 3, feeds the outputs: an equity range (Q1, median, Q3) and a value per share at the median. Each deal's year and acquirer are informational and enter no calculation.
What's in the file
- 01CoverCompany, currency, generation date, checks status, contents, colour conventions and disclaimer.
- 02InputsInputs: target net debt, shares and LTM metrics, primary multiple, and the deal table.
- 03MultiplesLTM EV/Sales, EV/EBITDA and EV/EBIT per deal ("excluded" or "n.m." where relevant), statistics below.
- 04ValuationFor each multiple: implied EV and equity value of the target at the 1st quartile, median and 3rd quartile.
- 05OutputsEquity value range and value per share for the primary multiple, selected by its number.
- 06ChecksTwo checks (statistics ordered, EVs positive) and two alerts (value available, enough deals).