Precedent transactions
What acquirers paid for control.
By Surojit Chakraverti, founder of L3VLUP and an investor running a long-short healthcare and technology equities strategy.
On this subject: precedent transactions.Updated 30 September 2026
What it does
The control view. Each deal is recorded as the equity value offered and the net debt assumed, which give the enterprise value paid; the multiples are read on the target’s last twelve months at announcement, because that is the basis the deal was struck on; the premium over the undisturbed price is shown separately, so control and growth are not confused.
Where it lives
The same schedule in each model that carries it, with the rows to open. Open a model in the browser, go to the sheet, and click the lines.
- Precedents, rows 6–11: Year announced, Target revenue, LTM at announcement, Target EBITDA, LTM at announcement, Equity value offered…
- Precedents, rows 14–18: Transaction enterprise value, EV / LTM revenue, EV / LTM EBITDA, Premium to the undisturbed price…
- Summary, rows 17–21: EV / LTM revenue, EV / LTM EBITDA, Premium to undisturbed, Check: the median is the second quartile
What a reviewer looks for
- A deal multiple applied to a forward estimate.
- The premium measured against a price that already carried bid speculation.
- Deals from a different cycle left in the set without comment.
Learn it, then build it
Understand · Primer
Comparable Company Valuation
Build · Lab · ~15 min
Comps Explorer
Curate a peer set you can defend name by name, calendarise it to one year end, and say what the median does and does not tell you.
Read · Guide · 7 min
Comparable Companies (Comps) Interview Questions
Vocabulary: Precedent Transactions, Control Premium.