Control premium: Difference between revisions
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imported>Doug Williamson (Create page. Source: Damodaran http://people.stern.nyu.edu/adamodar/pdfiles/country/controlshort.pdf) |
imported>Doug Williamson (Link with Private company page.) |
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* [[Premium]] | * [[Premium]] | ||
* [[Premium listing]] | * [[Premium listing]] | ||
* [[Value] | * [[Private company]] | ||
* [[Value]] | |||
Revision as of 11:01, 28 May 2017
Equity valuation
When valuing a firm, the value of control is often a key factor in determining value.
For example in acquisitions, acquirers often pay a premium for control that can be substantial.
On the other hand in private companies, there is often a discount attached to buying minority stakes in companies because of the absence of control.
