How to Use Transactional Databases for M&A

Abstract

Want to price M&A transactions more accurately and structure them more favorably? Then take a look at other completed transactions, advises the author. Databases now contain details on thousands of M&A transactions. The author shows you how to use them. © 2002 Wiley Periodicals, Inc.

Equity- And Entity-Based Multiples In Emerging Markets: Evidence From The JSE Securities Exchange

“…5 The use of absolute numbers prevents the netting of positive and negative valuation errors, which may result in artificially low measures of central tendency and dispersion such as the mean, for example. The multiple that produces the most accurate equity valuation will be the multiple with the lowest valuation error, which generally equates to the multiple with the tightest distribution around a central value such as the mean (Pratt, 2005). The seven measures of central tendency and dispersion that will be used to analyse the pooled observations are the mean, median, standard deviation (SD), coefficient of variation (CV), the inter-quartile range (IQR), median absolute deviation (MAD) and the coefficient of MAD (CMAD), which allows comparison with various international studies in this regard (Herrmann & The performance of the equity-and entity-based multiples is then evaluated by comparing the central tendency and dispersion of their respective valuation errors.…”