Why are some of the Alacra-sourced Mergerstat transactions not present in the Factset Mergerstat/BVR Control Premium Study?
• Because the CPS is the result of an analysis of the data by Mergerstat research analysts who review each controlling acquisition for its relevancy for inclusion in the Study, the CPS does not include transactions deemed to be outliers. • The CPS also does not include transactions where the valuation multiples fall outside the following ranges: • Price/Sales: 0-10X; • Price/Income: 0-40X; • Price/Book Value: 0-10X; • TIC/EBIT: 0-35X • TIC/EBITDA: 0- 25X? These values were established as acceptable ranges when the Study was first put together in the early 1990s. • The CPS includes a control premium that is based on an unaffected price. This price is chosen after an analysis of the trading volume and stock price fluctuations for the year prior to the date of announcement. The Alacra-sourced Mergerstat data does not include a control premium based on an unaffected price.
Related Questions
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