Which of the following is not an important factor to assess when identifying appropriate precedent transactions? Accretive/dilutive effect of the transaction on the acquirer Transaction rationale Transaction size Industry & financial characteristics 

Option , accretive/ dilute effect of the transaction on the acquirer

Explanation : Precedent analysis deals with looking at the historcial transactions to arrive at a the value of the firm to be acquiried.

Option A is incorrect since the effect of the transaction is the consequence of the acquisition on the acquirer and not a prior.

Option B is correct since precedent analysis deals with identifying the rationale i.e. the purpose of conducting the analysis.

Option C is correct as the analysis involve comparison of the previous transactions in terms of size and scope.

Option D is correct as the companies must select companies having similar financial structure and in the same industry as being analyzed.