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Dictionary by pitch.dog
Financial models & model mechanics · Working

Precedent-transactions model

Also called: precedent deals

ELI5

A valuation model using multiples from selected prior acquisitions or financings.

Used in conversation

“Run a downside case for precedent-transactions model before the review.”

Pitch context

You will see “Precedent-transactions model” in financial models, budgets, board packs and investor materials when the discussion reaches financial models & model mechanics.

Why it matters: In financial models & model mechanics, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

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Sources & evidence · 5

Direct term-level sources and supporting source families.