Precedent Transactions Help
Doing a school project that requires a precedents analysis. I’ve made comps before as CapIQ/Factset make this very easy. However, when pulling comparable m&a transactions from CapIq, are you supposed to only use strategic acquirers? Or should sponsor purchases also be included? Info is quite limited for the companies I’ve checked out. Thanks for any help
Need more information, but in general, you are looking for any relevant precedents (meaning both strategic and financial acquirers). Also, while CIQ is a great resource for a lot of things, I generally find the information around M&A activity pretty limited. Assuming you don't have access to other resources (MergerMarket, Bloomberg, Factset), I still regularly use Google to search for precedents (often banks looking to get into a particular sector will publish reports that include a set of precedents). It may not be as sexy as pulling from CIQ, but the goal is to find RELEVANT transactions as related to industry, size, and geography (at its core). Hope this helps, and good luck.
Sponsor acquisitions are fine too. They're not paying a different price / multiple solely because they are a sponsor
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