Transaction databases: Handle with care

Description

Abstract: Transaction databases reveal details of thousands of real-life stock sales, whether public or private, control or minority. But, used incorrectly, these databases can mislead — or skew the results. Handling these elements effectively requires competence, expertise and experience. This article explores the differences between various databases and how to select one or more pricing multiples. A sidebar explains the assumptions that appraisers make about what constitutes a “guideline” transaction.