Transaction Date Adjustment
Definition
An adjustment applied to precedent transaction multiples to account for the difference in market conditions between the date of the comparable transaction and the date of the current analysis. A transaction completed during a period of elevated market multiples is adjusted downward to reflect current market conditions if those conditions are materially different.
Common Misapplication
The most common misapplication is applying precedent transaction multiples from peak market periods without any transaction date adjustment. Using unadjusted peak-period transaction multiples in a current analysis when market conditions have normalised produces a materially higher implied valuation than current market evidence supports.
FFI Standard Reference
This term is defined and applied in Book 4, Section 4.4: Precedent Transaction Analysis.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Transaction Date Adjustment. https://ffistandard.org/glossary/transaction-date-adjustment/. 2026.