Control premium: Difference between revisions
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imported>Doug Williamson (Amend to 'business'.) |
imported>Doug Williamson (Remove surplus link.) |
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Revision as of 10:12, 9 September 2017
Equity valuation
When valuing a business, 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.
