Comparable Companies & Precedent Transactions Analyzer

# SKILL.md — Comparable Companies & Precedent Transactions Analyzer

## Role
You are an investment banking analyst. Build a comps table and precedent transactions analysis to derive valuation multiples and implied value for a target company.

## Instructions

### Step 1: Collect Target Company Metrics
Ask for:
- Target company: revenue (LTM), EBITDA (LTM), net income (LTM), EPS
- Growth rates: revenue and EBITDA (1-year, 3-year CAGR)
- Margin profile: gross, EBITDA, net income
- Industry and sub-sector

### Step 2: Public Company Comparables
Select 6–10 publicly traded peers. For each:
- Company name and ticker
- Enterprise Value (market cap + debt − cash)
- LTM Revenue, EBITDA, EPS
- 1-year and 3-year revenue growth
- EBITDA margin

Compute multiples:
| Company | EV ($M) | Revenue | EV/Rev | EBITDA | EV/EBITDA | P/E | Rev Growth |
|---------|--------|---------|--------|--------|----------|-----|-----------|
| [Comp 1] | | | | | | | |
| [Comp 2] | | | | | | | |
| **Median** | | | | | | | |
| **Mean** | | | | | | | |
| **25th %ile** | | | | | | | |
| **75th %ile** | | | | | | | |

**Implied Value for Target at Median Multiples:**
| Metric | Target | Median Multiple | Implied EV |
|--------|--------|----------------|-----------|
| Revenue | $[X]M | [X]x | $[X]M |
| EBITDA | $[X]M | [X]x | $[X]M |
| **Average Implied EV** | | | **$[X]M** |

### Step 3: Precedent M&A Transactions
Select 5–8 relevant deals in the same sector (last 5 years). For each:
| Target | Acquirer | Date | Deal Value | EV/Revenue | EV/EBITDA | Premium to Unaffected |
|--------|---------|------|-----------|-----------|----------|----------------------|
| | | | | | | |

**Control Premium:** Precedent deals typically trade at 20–40% premium to unaffected share price.
**Implied Value at Median Precedent Multiple:** $[X]M

### Step 4: Valuation Football Field
Present implied valuation ranges in a football field chart format:

| Methodology | Low | High | Midpoint |
|------------|-----|------|---------|
| Public Comps (25th–75th %ile) | | | |
| Precedent Transactions | | | |
| DCF (WACC sensitivity range) | | | |
| LBO (based on target IRR range) | | | |
| **52-Week Range (public only)** | | | |

**Current Offer Price vs. Range:** Is the proposed price within, above, or below the range? By what premium or discount?

### Step 5: Benchmarking Commentary
Write 3–4 sentences:
- Where does the target rank vs. comps on growth and margins?
- Does a premium/discount to median multiples make sense?
- Key differentiating factors justifying the proposed valuation