Question: Precedent Transaction Valuation - Selecting Relevant Transactions Precedent transaction valuation is especially important in the context of mergers and acquisitions, and as such has a

Precedent Transaction Valuation - Selecting Relevant Transactions

Precedent transaction valuation is especially important in the context of mergers and acquisitions, and as such has a few more considerations compared to comparable company valuation:

Which of the following are correct statements? Select ALL that apply.

()Precedent transactions will usually result in the highest valuation.

()A financial buyer can typically pay more than a strategic buyer.

()The date of the transaction is not important in most cases.

()Enterprise value is the effective purchase price of the target company.

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