Definition for : Transaction multiples

Transaction multiples are based on the multiples implied by transactions in the same sector as the company being valued (see valuation). The transactions should not be too old or they would reflect different Market conditions. In addition, size and geographical characteristics of the deals should be similar to the one contemplated. There is often a trade off between retaining a sufficient number of transactions and having deals that can be qualified as similar.
To know more about it, look at what we have already written on this subject