WALLSTREET PREP EXAM:
TRANSACTION COMPS MODELING
QUESTIONS AND COMPLETE
SOLUTIONS
, QUESTION 1
When doing a transaction comp analysis, some of the merger-related files that should be
examined include the following EXCEPT
8-K
Form S-1
Proxy statement
Form S-4
QUESTION 2
When establishing value for a company based on transaction rather than trading comps, one of
the major differences that will impact the value is
Lack of a comparable universe
Premium Raid for control of the business
Unavailable historical information
Target was never public
QUESTION 3
A company provided the following GAAP to non-GAAP reconciliation:
Non-GAAP Operating profit
($ in millions)
2019A
GAAP Operating protit 56
Amortization of purchased intangible assets 6
Stock based compensation 51
Restructuring expenses 184
Non-GAAP operating profit 297
Cash Flow Statement
($ in millions) 2019A
34
TRANSACTION COMPS MODELING
QUESTIONS AND COMPLETE
SOLUTIONS
, QUESTION 1
When doing a transaction comp analysis, some of the merger-related files that should be
examined include the following EXCEPT
8-K
Form S-1
Proxy statement
Form S-4
QUESTION 2
When establishing value for a company based on transaction rather than trading comps, one of
the major differences that will impact the value is
Lack of a comparable universe
Premium Raid for control of the business
Unavailable historical information
Target was never public
QUESTION 3
A company provided the following GAAP to non-GAAP reconciliation:
Non-GAAP Operating profit
($ in millions)
2019A
GAAP Operating protit 56
Amortization of purchased intangible assets 6
Stock based compensation 51
Restructuring expenses 184
Non-GAAP operating profit 297
Cash Flow Statement
($ in millions) 2019A
34
