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Comparable Transaction valuation.

Comparable transaction analysis (often called ‘precedent transaction analysis’) values a business by reference to recent sales of similar companies. It reflects what real buyers have actually paid in the current market.

Other sectors

  • — Best for
Any business in a sector with sufficient transaction data — particularly useful for mid-market deals where private transaction data is available through specialist databases.
  • — How it works

Step by step

01

Identify comparable transactions

Source UK SME deals in the same sector, size band, and recent time period (typically last 24–36 months).

02

Normalise the metrics

Adjust each comparable for differences in growth, margin, customer mix, and one-off items.

03

Derive a multiple range

Calculate the median and quartile multiples (EBITDA, revenue) from the comparable set.

04

Apply adjustments

Adjust the chosen multiple up or down based on how the subject business compares on key drivers.
  • — Strengths
  • Anchored in real market evidence
  • Reflects current buyer appetite
  • Easy to communicate to sellers and buyers
  • Credible in negotiation
  • — Limitations
  • Quality depends on comparable data access
  • Private deal data is often incomplete
  • Sector and size matching is challenging
  • Market conditions change rapidly
  • — Our insight

"The credibility of a comparable analysis depends entirely on the quality of the comparable set — five well-matched transactions are more useful than fifty loose ones."

  • Take the next step

Find out what your business could be worth before buyers do.

If you are considering a sale now or in the next few years, a confidential valuation call can help you understand where you stand, what buyers may look for, and what could improve your outcome.

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Private, no-obligation discussion for business owners.