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Unformatted text preview: AVG. bidder gives away all their synergies BEST COMPARABLE NUMBERS (note: EV/EBITDA, EV/SALES are garbage) Main problems: If public target, be careful that target stock price doesn't contain any rumors of a possible deal If private target, what is the stand alone value to use with premium paid To fix transaction accounting multiples use: Public transaction multiple: multiple for acquired firm where EV is calculated based upon the preann price and not the price paid Match the comparables firms with the target based on their preann multiple...
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- Spring '10