Outsourcing market multiples analysis

professional profile

July 27, 2021

by a professional from Victoria University of Wellington in New Zealand

Wondering if anyone outsources the analysis of market multiples for an industry?

Hoping there is a service or contractor who can take an industry and come back with all the transactions / multiples. I can then make the final call on which multiple applies to the particular business. Compiling this information is very time consuming and expensive..

Perhaps you can even do this through Upwork...but they'd need access to Pitchbook, MergerMarket etc. DealStats are great but are too US focused for my business.

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commentor profile
Reply by a searcher
from University of Toronto in Edmonton, AB, Canada
In my experience the market multiples valuation in an LBO scenario is only a gut check on your deal, and not the main driver in your bid. Your capital stack (cost of capital) and required investor return will ultimately drive the valuation. Start at a higher valuation to see if your debt load can handle it then work backwards until you've achieved the necessary equity return within your debt covenants. At that point look at the implied multiple and ask yourself if it makes sense and whether you'll be able to raise capital within the framework.
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Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
This works for me and my clients. What about for you? https://partneroncall.com/links-resources-for-business-industry-profiles-buy-sell-stats-comps/
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