The similar transaction ratio comparable method is said to be a comparable transaction comparison method and is based on the profit ratio calculated from the M & A transaction amount of a plurality of listed companies having similar business types to the evaluation target company, It refers to a method of calculating the price of the transaction. Compare the price of the transaction which is made public in the similar transaction with the financial value of the company which is the target of the company sale, calculate the respective magnifications, and use the corresponding magnification to evaluate the company to be evaluated. The similar transaction ratio law is carried out when the transaction price in similar M & A transactions that have occurred so far has been announced and the company to be acquired is a listed company and the financial figures are known It is a method. There is a comparable public company comparable method as similar to this similar transaction ratio comparable method. This method is characterized by calculating the stock price of the company to be evaluated on a separate basis.
Difference between Similar Activity Comparable Substitution Method and Similar Public Company Comparative Method in M & A
Is there a difference between the Similar Transaction Substitution Method and the Similar Public Company Comparable Method in M & A transactions of company selling? For example, the calculation method of magnification is different. The similar transaction ratio comparable law will calculate the magnification based on the transaction price of similar transactions. On the other hand, the similar public company comparable law determines the multiplier based on the price of the transaction of the similar public company’s stock market. There is also a difference in control premium. Under the similar transaction ratio law, control premium is included in the case of M & A transactions on the premise of acquisition, but in the comparable public company comparability law, the control premium is not included in the price. There is also a difference in the data to be referenced. Since the information on M & A transactions is not in place in Japan, the number of transactions is small in the comparable similar transaction ratio law, so the magnification may not be said to be appropriate. On the other hand, in the similar public company comparable method, since the number of companies that are chosen as similar public enterprises is large, the magnification is considered to be relatively appropriate. Because similar acquisition ratio premium is taken into account in comparable transaction ratio law, it may be higher than similar company comparison method.