Module II· Precedent TransactionsIntermediate
Question
How do public-deal multiples differ from private-deal multiples?
Answer
Public deals (listed target)
the multiple comes from offer price × shares + net debt = EV, divided by disclosed EBITDA. Very precise, because all the data is public. Private deals: the multiple is often only indirect — the buyer discloses the deal value, but the EBITDA basis and net-debt adjustments aren't clear.
Deep diveShow more details
Consequence
Private-deal multiples carry higher uncertainty (±0.5–1.0x EBITDA). Pitfall: mixing public and private comps can distort — public deals tend toward higher multiples because of the visible premium.
Pitch tip
In the pitch, two separate tables: 'Public Deal Multiples (precise)' and 'Private Deal Multiples (estimated range)' — an explicit split.