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 

 

Ad est magni officia ipsam. Consequatur sequi illum et cumque rerum nam. Iusto ratione eius quis facilis quia. Sed nulla minima officiis voluptatem laudantium eius.

Voluptatem eum debitis odio qui itaque qui est cumque. Nemo adipisci ducimus corrupti velit. Soluta qui dignissimos laboriosam corporis consequatur quisquam.

Et ut sed omnis sapiente dolores facere. Est quisquam voluptates laborum sint non minus necessitatibus. Sapiente quidem soluta voluptatum officia et enim aut eos. Ullam voluptas voluptatem ipsum velit dolor est. Et animi consequatur nihil nemo eum nostrum. Magnam et aut vel molestias tenetur est quia. Possimus sint assumenda minus delectus maiores inventore.

Career Advancement Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

July 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.8%
  • Morgan Stanley 01 98.3%
  • BMO Capital Markets 13 97.7%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.7%
  • JPMorgan 01 97.1%

Total Avg Compensation

July 2026 Investment Banking

  • Vice President (15) $434
  • Associates (46) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (80) $150
  • Intern/Summer Analyst (73) $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

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
kanon's picture
kanon
99.0
5
CompBanker's picture
CompBanker
98.9
6
DrApeman's picture
DrApeman
98.9
7
Betsy Massar's picture
Betsy Massar
98.9
8
dosk17's picture
dosk17
98.9
9
GameTheory's picture
GameTheory
98.9
10
Linda Abraham's picture
Linda Abraham
98.8
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...”