You Mentioned That Precedent Transactions Usually Produce A Higher Va

1.	You Mentioned That Precedent Transactions Usually Produce A Higher Value Than Comparable Companies - Can You Think Of A Situation Where This Is Not The Case?
Answer» Sometimes this happens when there is a SUBSTANTIAL MISMATCH between the M&A market and the public market. For example, no public companies have been acquired recently but there have been a lot of small private companies acquired at extremely low valuations. For the most part this GENERALIZATION is true but keep in mind that there are exceptions to ALMOST every "RULE" in finance. Sometimes this happens when there is a substantial mismatch between the M&A market and the public market. For example, no public companies have been acquired recently but there have been a lot of small private companies acquired at extremely low valuations. For the most part this generalization is true but keep in mind that there are exceptions to almost every "rule" in finance.

You Mentioned That Precedent Transactions Usually Produce A Higher Value Than Comparable Companies - Can You Think Of A Situation Where This Is Not The Case?

Answer»

Sometimes this happens when there is a SUBSTANTIAL MISMATCH between the M&A market and the public market. For example, no public companies have been acquired recently but there have been a lot of small private companies acquired at extremely low valuations.

For the most part this GENERALIZATION is true but keep in mind that there are exceptions to ALMOST every "RULE" in finance.

Sometimes this happens when there is a substantial mismatch between the M&A market and the public market. For example, no public companies have been acquired recently but there have been a lot of small private companies acquired at extremely low valuations.

For the most part this generalization is true but keep in mind that there are exceptions to almost every "rule" in finance.

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