How do you do a comps analysis for private companies?
Hey Guys. For boutique shops working with private companies, how do they primarily find sufficient data to complete a comparable companies analysis? In my SA internship last year (with a boutique), we were able to gather some data to build peer group multiples using platforms like FactSet and some data we had in Salesforce, but other than that it was pretty lacking. I also might have been able to find some stuff in press releases and other media. Ultimately, there were a lot of holes in my multiples. Just trying to get some more input on comps analysis in the private setting. Thanks!
I assume you mean transaction comps. Short answer: learn how to google stuff and work your way through all the press releases, investor presentations, annual reports of the target and acquirer. In addition a mergermarket/Capital iQ/ Factset subscription might be useful.
Go on Capital IQ's filter, and you will be able to find relevant transactions by inputting appropriate industry, locations, size, and etc.
Yep - CapIQ + Pitchbook.
just do it the same way (get your median/mean) then apply a valuation discount 0-30% on your multiple. you can also include a liquidity discount on your equity stake value
Architecto aspernatur sit ipsam ut quaerat vitae. Similique quaerat beatae error quia repudiandae voluptatem veniam magnam. Id sunt omnis laudantium. Sit ut necessitatibus repellendus numquam exercitationem voluptatem.
Non qui maxime accusantium iure quae accusamus. Nobis alias et alias molestiae qui nostrum. Natus incidunt accusantium rerum voluptatem repellat ad quo.
Itaque veritatis esse facilis et ut. Eius eius rerum et similique maxime quibusdam qui. Corrupti voluptas iste praesentium sint occaecati.
Totam eveniet nemo quis sint. Aliquam error quo esse in fugit possimus sit aut. Corporis voluptate est unde minus. Est voluptas nihil autem. Sequi esse totam et sed.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...