In this video, we discuss on Transaction multiples valuation definition along with its calculation , advantages and disadvantages.

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Multiple Transactions or Multiple Acquisitions is a method in which we look at past Merger & Acquisition (M&A) transactions and value a similar firm with precedents.

It is based on the assumption that the value of the company can be estimated in similar acquisitions by analyzing the price paid by the acquiring company.




#Step 1 Determine the Transaction
#Step 2 Identify multiples of Right Transaction
#Step 3 Calculate the Transaction Multiple Valuation




#1 Anyone can access available data since it is public.
#2 Since the assessment is carried out on a range basis, it is much more practical.
#3 It also helps you better understand business.




#1 Individual viewpoints would occur during the valuation of the target company; no one can avoid them.
#2 Even if various factors are taken into account, many more factors are still not considered.
#3 No deal can be the same, even if deals are compared. There would be one or more dissimilar factor.
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