Precedent deals - how old is too old?
Probably self explanatory, but any consensus on how old a precedent transaction can be before it's irrelevant? Theoretically, a set of multiples from a 20 year-old deal should be just as relevant as one from a 20 day-old deal (the definitions of earnings, EBITDA, etc. don't change, after all), but wondering if there's any kind of broad rule, especially in sectors that don't have a huge volume of deals every year.
Really depends on your industry and perhaps the # of relevant transactions that fit within the criteria for your target company. Depending on your vertical/team, you could be going back a maximum of 2 years, or maybe up to 5 years if there aren't enough comp transactions to fill out a meaningful set. Some industries are just hotter than others in terms of transaction volume
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