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Making pro forma adjustments to comparable companies' balance sheet items is often the trickiest part of comparable companies analysis. Suppose you are an investment banker positioning a technology-focused third-party logistics company your client for an IPO. Download Comparable Companies Analysis Template. To compare comparable companies effectively, you must understand why their multiples are different.

Suppose you are an investment banker positioning a technology-focused third-party logistics company your client for an IPO. Comparable companies will usually share the similar industry, business, and financial characteristics with the target. The median is generally the most meaningful metric, because it naturally screens outliers.

Once you have identified the comparables universe, the next step is to collect the necessary information on each comparable company to perform the analysis. To determine how public markets might value the company, an investment banker will establish the comparables universe, which may consist or one or more peer groups. To select the comparables universe, you must understand the target company's business.

Charlie likely trades at a premium 9. You will need the following information for each company, as a minimum:. Build models 5x faster with Macabacus for Excel. Projected income statement items such as revenue, EBITDA, and net income usually exclude non-recurring items and are pro forma for corporate events like planned divestitures, so you won't likely have to adjust these figures. To select the comparables universe, you must understand the target company's business.

Material events for which you should make pro forma adjustments include, but are not limited to:. The following sources can be used to help identify suitable comparable companies:. To determine how public markets might value the company, an investment banker will establish the comparables universe, which may consist or one or more peer groups.

To compare comparable companies effectively, you must understand why their multiples are different. Suppose you are an investment banker positioning a technology-focused third-party logistics company your client for an IPO. Please note that Macabacus no longer supports Internet Explorer versions 7 and 8.