precedent-transaction-screenerlisted

# Precedent Transaction Screener ## Purpose Identify the M&A transactions that genuinely inform what a control buyer would pay for this target — and discard the ones that look comparable but were priced under conditions that no longer apply. The output is not a long list of "transactions in the sector." It is a tight set of true comparables, calibrated for cycle, deal structure, and buyer type, with the multiples that should actually anchor the valuation conversation. ## Governing Principle **A precedent is only useful if you would re-do the deal at the same multiple today. If not, adjust or discard.** Bad precedent work pads the page with deal count. Good precedent work cuts the list down to the five to fifteen transactions that an experienced buyer or seller would actually negotiate against. ## The Five Filters Every Precedent Set Must Pass Every precedent in the final set must clear all five filters, with explicit justification on the borderline cases. 1. **Business comparability** — same business model, customer profile, and economic shape 2. **Scale comparability** — close enough in size that scale economics and buyer universe overlap 3. **Geography and regulatory comparability** — same regime, or explicitly adjusted 4. **Deal structure comparability** — control transaction with similar consideration mix and process type 5. **Cycle comparability** — same credit and sector regime, or cycle-adjusted A precedent missing one of these is a footnote. A precedent miss