The Transactions screen in Valutico is a valuable tool for identifying relevant M&A transactions involving companies similar to the one you're valuing. By analyzing the observed transaction multiples (e.g., Enterprise Value/Sales, Enterprise Value/EBITDA, Enterprise Value/EBIT, or Price/Earnings), you can derive a more accurate valuation. Here's a beginner's guide to using the Transactions feature on Valutico.
Searching for comparable transactions
Finding comparable transactions on Valutico is straightforward and shares similarities with searching for suitable peer companies.
Valutico's main Transactions database, provided by S&P Capital IQ, contains an extensive record of over 850,000 transactions from around the world. Additionally, premium packages offer access to the EMIS and Beauhurst transaction databases. Please contact your Customer Success Manager if you're interested in this premium package.
Public vs. private transactions
Currently, Valutico does not distinguish between public and private company transactions. While there may be slight differences in the multiples paid for listed and unlisted companies, you can control for these differences using the transaction filter. Generally, it's advisable to target transaction sizes that are reasonable and ensure comparability with the company you're valuing.
If the most appropriate transactions are substantially larger or related to public companies, you can apply a discount to the observed median multiples to account for these differences.
It's important to note that in some cases, search results may provide details of a transaction but limited or no information on deal size or the actual implied multiples. This limitation arises from the information available when the transaction occurred, such as when a deal was announced but the financial details were not made public.
Adding custom transactions
Valutico also allows you to add custom transactions to your list. These can be transactions based on your personal knowledge or from a different data provider. Custom transactions function in the same way as transactions from Valutico's databases in terms of calculating multiples.
How to add custom transactions:
Click the "+ Custom Transaction" button at the top right of the page, near the Advanced Search.
This will open the Custom Transaction creation window, where you can input relevant transaction details. Fields marked with a red asterisk (*) are mandatory.
Once you've filled in all the required fields, click "Add Transaction" to include it in your list.
Custom transactions are used only in the specific valuation for which they are added. They are not shared with other users. This means that you will need to upload custom transactions for each new valuation you create.