Breach and Control premium: Difference between pages
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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 == | == See also == | ||
* [[ | * [[Discount]] | ||
* [[ | * [[Equity]] | ||
* [[ | * [[Forward premium]] | ||
* [[ | * [[Premium]] | ||
* [[ | * [[Private company]] | ||
* [[ | * [[Value]] | ||
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.
