[Verse 1]
When you need to value what a company's worth
Look to the past deals that came before
Precedent transactions show the market's birth
Of pricing patterns we can explore
Find the targets that match your size and sector
Same industry, same financial health
Transaction multiples are your detector
Revealing how buyers measured wealth
[Chorus]
Price to earnings, price to sales
Enterprise value to EBITDA tales
Control premium lifts the price
Market conditions roll the dice
Precedent transactions guide the way
Yesterday's deals inform today
Multiples tell the story true
Of what acquirers paid on cue
[Verse 2]
Control premium adds that extra layer
When buyers want the steering wheel
Twenty to forty percent they'll pay her
For the power to make each deal
Strategic buyers pay more than financial
Synergies drive their higher bids
Market timing proves essential
Bull markets lift what sellers get
[Chorus]
Price to earnings, price to sales
Enterprise value to EBITDA tales
Control premium lifts the price
Market conditions roll the dice
Precedent transactions guide the way
Yesterday's deals inform today
Multiples tell the story true
Of what acquirers paid on cue
[Bridge]
Screen for size and industry
Time period matters too
Six months to two years history
Recent deals give better clues
Adjust for market volatility
Strip out one-time special gains
Cash versus stockability
Affects what value remains
[Verse 3]
Plot the multiples on your screen
Find the median and the range
Twenty-fifth to seventy-fifth percentile
Shows where values interchange
Weight the deals by relevance
Size and timing matter most
Recent transactions take precedence
They're your valuation host
[Final Chorus]
Price to earnings, price to sales
Enterprise value to EBITDA tales
Control premium lifts the price
Market conditions roll the dice
Precedent transactions guide the way
Yesterday's deals inform today
Apply the range to target firm
Let transaction data confirm
[Outro]
When markets move and sectors shift
Precedent analysis gives the gift
Of real world pricing, tested true
Transaction multiples guide you through