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All of the following are weaknesses of a precedent transactions analysis EXCEPT: Multiples may be skewed, depending on the economic environment Precedent transactions by definition

All of the following are weaknesses of a precedent transactions analysis EXCEPT:

  1. Multiples may be skewed, depending on the economic environment
  2. Precedent transactions by definition have occurred in the past, and may not be reflective of the current environment
  3. A precedent transactions analysis makes too many assumptions about future performance
  4. Information may be insufficient to determine transaction multiples for many comparable acquisitions.

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