Target Valuation Analysis for M&A
Build defensible M&A target valuations using CCA, precedent transactions, and DCF
What You Can Do
You can systematically build multi-method valuation frameworks that establish defensible target pricing ranges. The skill guides you through comparable company analysis using industry benchmarks, precedent transaction analysis to validate market transaction logic, and DCF modeling to support intrinsic value arguments. Output includes structured valuation summaries, sensitivity analyses, and recommendation positioning tied to deal phases from LOI negotiation through board approval.
Features
identify peer multiples, calculate median/mean valuations, and benchmark target against industry comps with specific multiple ranges
analyze historical deal multiples, transaction premiums, and market conditions to establish transaction-based valuation support
build scenario-based DCF models with sensitivity tables for WACC, growth rates, and terminal value assumptions
combine three methodologies into recommended valuation ranges with weighting justification and recommendation positioning
create multi-variable sensitivity tables (EBITDA, revenue growth, discount rate) for board presentations and negotiation scenarios
calculate valuations for all-cash, stock, and earnout structures with present-value adjustments
generate detailed valuation workpapers, assumption documentation, and peer selection justification for opinion provider engagement
Example Output
Valuation Summary Output:
| Methodology | Low ($M) | Mid ($M) | High ($M) | Multiple |
|---|---|---|---|---|
| Comparable Companies | 485 | 520 | 560 | 8.5-9.2x EBITDA |
| Precedent Transactions | 510 | 545 | 580 | 8.8-9.5x EBITDA |
| DCF (Base Case) | 520 | 560 | 605 | — |
| Recommended Range | 510 | 545 | 580 | 8.8-9.5x |
Sensitivity Analysis (DCF, $M): WACC ranging 7.5%-9.5% × Revenue Growth 3%-7% = valuations from $485M to $625M depending on scenario assumptions.
Recommendation: Position target at $545M (9.0x EBITDA) supported by precedent transaction evidence and peer median benchmarking, with upside to $580M if synergy assumptions validated.
What's Included
- SKILL.md instruction file with methodology frameworks and data requirements:
- Comparable Company Analysis template with peer identification checklist, multiple calculation spreadsheet, and benchmark positioning worksheet:
- Precedent Transactions framework documenting historical deal multiples, transaction adjustments, and precedent selection logic:
- DCF Model template with sensitivity tables, scenario builder, and assumption documentation workpapers:
- Valuation synthesis checklist for combining methodologies, weighting justification, and recommendation positioning across deal phases:
Who It's For
- Investment bankers building pitch books and valuation support materials for M&A transactions
- Corporate development professionals evaluating target valuations and deal pricing recommendations
- Private equity investors establishing valuation ranges and LBO modeling for acquisition candidates
- Transaction advisors and fairness opinion providers documenting valuation workpapers and peer selection
- CFOs and board members requiring defensible valuation frameworks for strategic acquisition decisions
Best For
- Initial target identification and preliminary valuation parameterization
- LOI negotiation support with industry-benchmarked valuation defense
- Board presentation materials and IC investment committee recommendations
- Walk-away price establishment and deal structure scenario modeling
- Valuation sensitivity analysis for changing market conditions or financial assumptions
- Fairness opinion engagement and workpaper documentation
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