Module II· Precedent TransactionsIntermediate
Question
How do you select the universe of Precedent Transactions?
Answer
Selection criteria
- Sector: the same industry as the target.
- Geography: preferably the domestic region/Europe, with US deals as a supplement subject to a caveat.
- Size: deal EV in a 0.3x–3x range of the target EV.
- Vintage: typically the last 3–5 years; older deals only as context.
- Deal type: strategic vs. financial — separate buckets, because the multiples differ.
- Exclude: distressed sales, government-mandated transactions, family-internal transfers.
Final set
8–15 deals.
In practice
In a middle-market context with thin deal flow, broaden the universe to European mid-cap industrials.
Deep diveShow more details
Pitch tip
'Of 30 initially identified deals, 12 selected after filtering — vintage 2022–2025, geography Europe, deal size $200m–$2bn.'