Best Multiple Comps Tool for PE Targets?

by a searcher

4 months ago

I’m looking at a niche industry that is traditionally rolled up by PE.  Do you know what tools would have history of these transactions?

BVR doesn’t have much, and I worry that Peer Comps may not either seeing that they seem to be pulling from SBA data.

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searcher

GF Data is great for pulling comps. Many PE firms subscribe to this and submit deals on a blind basis to get market comps back. https://gfdata.com/

4 months ago | like reply | 0 likes

searcher from University of Glasgow

I have found it difficult to get small private company transaction values, public company details are more readily available through one of the platforms, so it really depends on the size of the acquisition EBITDA. For very small businesses i.e. £100K - £500K, you could look at bizbuysell, for slightly larger ones take a look at BVR. This community is generally looking at £1M - £5M in EBITDA, so finding relevant information can be challenging and other methods of valuation can be employed DCF, historic industry specific multiples. Unfortunately there is no one single specific answer hence the plethora of new valuation platforms that have sprung up over the last few years. Personally I have a tool that looks at all of the above and I will also look at IRR. In conclusion the 3 main ways are: seller view - historic adjusted EBITDA, buyer view - DCF, market view- comps (precedent transactions).

4 months ago | like reply | 1 like

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