Control premium: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Link with Private company page.) |
imported>Doug Williamson (Amend to 'business'.) |
||
| Line 1: | Line 1: | ||
''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. | ||
Revision as of 11:02, 28 May 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.
