Which piece of information is needed for analyzing a precedent transaction?

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To effectively analyze a precedent transaction, it is crucial to have detailed financial statements and deal information. This information provides insights into the valuation metrics used in the transaction, the financial health of the companies involved, and other contextual factors that influenced the deal. Specific details about the transaction, such as the purchase price, terms of the deal, and the characteristics of the companies involved, help in establishing benchmarks for valuation multiples like EV/EBITDA or Price/Earnings ratios.

Without this comprehensive set of data, it would be challenging to draw meaningful comparisons or derive insights that could guide future transaction assessments. Other options, such as personal opinions of analysts or historical network traffic data, do not provide the quantitative analysis required for precedent transaction evaluation. Similarly, while forecasted product sales may give insight into future performance, they are not directly applicable when analyzing previous transactions.

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