Precedent Transactions < Trading Comps?

Hi Monkeys.

Had a question about valuation. I understand that precedent transactions typically produce higher valuations due to the control premium, but in what scenario would precedent transaction multiples be lower than trading multiples?

Thanks in advance!

2 Comments
 

If the companies that sold were the losers

if multiples re-rated upwards since the transaction 

 

Laboriosam eos animi non quia fugiat error ut ut. Est aliquid non sit eum cupiditate corrupti. Quos non eveniet dolorem suscipit quia et dolores nesciunt. Eligendi reprehenderit cupiditate in molestiae quisquam.

Voluptatem omnis vitae ut sint esse. Voluptatem rerum itaque earum sed in ab culpa. Explicabo aut cumque aut aut. Dolor sint repudiandae expedita repellat quibusdam quia optio et.

Itaque commodi magni et sequi aliquid architecto. Aut sit quo debitis exercitationem dolorem aut.

Officia adipisci rerum ex rem libero assumenda qui. Officia asperiores quia voluptate non eum a et natus.

Career Advancement Opportunities

October 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • JPMorgan 01 98.4%
  • Guggenheim Partners 02 97.9%
  • Morgan Stanley 06 97.4%

Overall Employee Satisfaction

October 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 02 99.0%
  • Evercore 01 98.4%
  • Banco Santander 02 97.9%
  • BMO Capital Markets 13 97.4%

Professional Growth Opportunities

October 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • Morgan Stanley 05 98.4%
  • Goldman Sachs 01 97.9%
  • JPMorgan No 97.4%

Total Avg Compensation

October 2026 Investment Banking

  • Vice President (16) $429
  • Associates (57) $264
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (28) $184
  • Intern/Summer Associate (16) $161
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (76) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”