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Target / Deal Multiples

Target / Deal Multiples defined: A target / deal multiple, also known as a transaction multiple, is a ratio of the valuation of a business relative to an annualized metric such as revenues or earnings. Comparable transaction / deal multiples are used to arrive at the value of business based on completed M&A deals in the same industry as the company being valued. Company size, market conditions, and geographical characteristics should also be considered when selecting comparable deal multiples.

Above is a definition for “Target / Deal Multiples” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.

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