How to use the guideline transaction databases—the right way

BVWireIssue #73-2
October 8, 2008

Many questions arise when using the guideline transaction method (aka the merged and acquired method).  As this method developed and grew over time, private company transaction databases like Pratt’s Stats®, BIZCOMPS®, Factset Mergerstat Global Mergers and Acquisitions Information and Done Deals® were created to help the BV profession gain access to details on private acquisitions. 

These databases allow BV professionals to relate the price paid in other transactions to their subject company’s underlying financial data—ultimately creating and applying valuation multiples.  But just exactly how is this done, and what differences do you need to know about the various private company transaction databases?  

The authors of The Comprehensive Guide to the Use and Application of the Transaction Databases, Nancy J. Fannon, ASA, MCBA, CPA, ABV, BVAL and Heidi Walker, ASA, CPA, ABV (both of Fannon Valuation Group, Portland, ME), will be presenting a special teleconference on October 23rd that will offer information on how to use these transaction databases (register here). This is your opportunity to learn, in detail, about the transaction databases and to get your questions answered.  Also be sure to see the introductory chapter of The Comprehensive Guide to the Use and Application of the Transaction Databases and the article How to Use Transactional Databases for M&A: 2008 Update, both available on our Free Downloads page.

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