How do you decide which deals to include?
Judgement on relevance — a long list of loosely related deals is worth less than five good ones.
Answer it out loud firstTake 30–60 seconds, as you would in the room. Then compare with the model answer.
Show the model answer
Look for deals where the target's business, size and geography are comparable, that are recent enough to reflect today's market and financing conditions, and where control changed hands. Then study each one: was it a competitive auction or a distressed sale, a strategic or a financial buyer, completed or withdrawn? A few relevant deals, understood properly, beat a long list.
The full answer
| Criterion | Why it matters |
|---|---|
| Business and end markets | Drives growth and margins |
| Size | Scale changes risk and the buyer universe |
| Date | Multiples move with markets and the cost of debt |
| Control vs minority | Only control deals carry a control premium |
| Buyer type | Strategic buyers can pay for synergies |
| Process | Auctions push prices up; distressed sales down |
| Status | Completed deals, not abandoned bids |
Be ready to explain the outliers — a mega-deal at the top of a cycle, a forced sale — and whether you excluded or kept them.
Mistakes to avoid
Using deals from a very different credit environment without comment.
Follow-ups they may ask
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