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 (Classify page.) |
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''Equity valuation'' | ''Equity valuation'' | ||
When valuing a | 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. | For example in acquisitions, acquirers often pay a premium for control that can be substantial. | ||
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* [[Equity]] | * [[Equity]] | ||
* [[Forward premium]] | * [[Forward premium]] | ||
* [[Liquidity premium]] | |||
* [[Premium]] | * [[Premium]] | ||
* [[ | * [[Private company]] | ||
* [[Value] | * [[Valuation]] | ||
* [[Value]] | |||
[[Category:The_business_context]] | |||
[[Category:Corporate_finance]] | |||
[[Category:Investment]] | |||
Latest revision as of 20:24, 31 July 2021
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.
