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)
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Revision as of 10:29, 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.


See also