Control premium

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Revision as of 10:12, 9 September 2017 by imported>Doug Williamson (Remove surplus link.)
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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.


See also