Give me some example comparable company screens
Answer
There are three main considerations:
- Industry Classification
- Financial Similarity
- Geography
Examples:
- Facility Management Companies over $50mm in Revenue
- Educational Technology Companies over $100mm in Revenue
- Profitable ERP Software Companies in the US
Why this matters to bankers
Bankers use comparable companies to ascribe valuation. However, if you don’t choose the right companies, the valuation derived from the method may as well be useless