Transaction Comp Peer Group Criteria

This question practices how to screen M&A transactions for comparability in relative valuation. A good answer requires thinking through deal context, including who bought the business, why the deal happened, how competitive the process was, whether the sale was negotiated or auctioned, what the market backdrop looked like, whether the deal was friendly or hostile, how the buyer paid, and whether industry timing distorted the price. Interviewers ask this because transaction comps are only useful when the deals are truly similar, and candidates need to show judgment about what can make a transaction more or less relevant for valuation.