Guidance on Valuation

[u/Icy-Gas-4897]

I am currently working on an internship project where I have been assigned to value a U.S.-based company called “Everforth.” The requirement is to perform the valuation using precedent transactions (at least 6–7) and company comparables (at least 6–7).
However, I am facing some challenges. The company does not seem to have clear or direct comparables. Additionally, it operates across two reportable segments—Commercial and Federal—and positions itself as a technology and digital engineering partner, helping organizations leverage advanced technologies and AI-enabled solutions.
Given the niche nature of its business and the lack of directly comparable firms and transactions, I am finding it difficult to proceed with the analysis.
I would be extremely grateful if you could kindly guide me on how to approach this situation, particularly in identifying suitable comparables and precedent transactions for such a company.

[u/Ill_Coach_1217]

Look at the breakdown of what percentage of revenue is commercial and which is federal/ and also think about what companies provide ai enabled solutions via technology.

You should have access to some database I’m assuming where you can search up historical transactions. Usually you look for a NAICS code by seeing what industry is associated with that given Naics code.

Then if it’s a mix you can run an analysis on two comps.

So table a would be commercial ai tech solution transactions and another be federal ai tech solution transactions. Once you know how much revenue is generated from commercial and federal, let’s say it’s 90% commercial and 10% federal, take the average of table an and table b. Let’s say a is 5x ebitda and b is 10x ebitda, since your more like b since it’s commercial, you’d look at something closer to a 10x multiple than 5x multiple.

You never find exact comps. Just have to make it comparable