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
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