Analyzing the Data
Next, we must enter the relevant information onto the output sheets used for purposes of data analysis. Assume the following multiples were calculated for each of the following comparable transactions. Here is the output sheet that was the result of our research:
Buying Company |
Selling Company |
Enterprise Value |
EV/LTM Sales |
EV/LTM EBITDA |
LTM P/E Ratio |
Premiums Paid % |
Stone |
Ruby Rock |
$2,100 |
1.5x |
7.9x |
15.0x |
25% |
Gemini |
Virgo |
$1,350 |
1.4x |
7.0x |
13.8x |
22% |
Canin |
Northwest Design |
$1,280 |
.9x |
8.9x |
18.2x |
33% |
Cascade |
Fuggles |
$875 |
1.1x |
7.1x |
15.1x |
18% |
Blue, Inc |
Spartan |
$825 |
.7x |
6.2x |
17.2x |
20% |