Precedent transactions usually produce a higher value than comps. Can you think of a case where they don't?

• Only when the target is profitable, since strong current earnings drag the precedent multiples paid downward
• When the precedent deals occurred in a depressed market or were distressed or non-competitive sales, so their multiples lag current trading levels
• Whenever the acquirer is large, since big buyers reliably negotiate below-market multiples on their deals
• It can never happen, since precedent multiples always carry a control premium that trading comps simply lack
• Only for private targets, whose observed deal multiples come in below public trading comps by definition