Module II· Precedent TransactionsAdvanced

Question

How do you defend your precedent selection in an interview when an MD asks 'Why these 8 deals'?

Answer

Structured defense:

Initial universe: 'We started with 25 European industrials deals 2022–2025 above $100m EV.'
Filter: 'Excluded 8 distressed sales, 4 carve-outs without clean EBITDA, 5 take-privates without disclosed multiples.'
Final 8 deals: 'Strategic deals (n=5) show a median of 11x; financial deals (n=3) show a median of 9.5x — we report both.'
Defendability: 'Your suggestion to exclude CompX and CompY — both had a distressed component; CompZ is 2019, pre-COVID market, not representative.'

Deep diveShow more details

Pitch tip

In an interview, know 3–5 alternative deals and have concrete reasons for rejecting them. Also: 'I would supplement with 2–3 recent transactions if you have specific names in mind' — it shows flexibility.

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