BVR enhances implied minority discount offers with FactSet Mergerstat control premium upgrade

BVWire–UKIssue #20-1
November 3, 2020

The value of control has been trending lower in the UK. Current overall data from the FactSet Mergerstat/BVR Control Premium Study of over 1,300 UK companies show a median increased value of controlling interest shares of only 20.7% (this converts to a median implied minority shareholder discount of about 17%). The control premia averages have dropped from the 27%-to-29% range, typical of the period from 2011 until last year.

These premia and discounts vary widely by industry sector and other factors. To help UK business valuers, BVR has just released major enhancements to the data and functionality of the Control Premium Study. Starting today, subscribers will see platform upgrades. Please join us for our free webinar on Tuesday, 5 November, where we will discuss the changes.

Most importantly, users will find:

  • Invested capital premiums/discounts: A Mergerstat invested capital premium and the corresponding implied minority discount will now be included along with the equity premiums/discounts.
  • New platform: The study is moving into a new platform that features enhanced search/filter capabilities, customized display and Excel downloads, the ability to save searches, and more. Our subscribers have expressed a great deal of interest in invested capital premiums, and we are excited about this addition.
  • More timely data: The study will now be updated weekly, rather than quarterly. This means you will have access to all the new controlling interest purchases each week—no more waiting until the quarter ends.
  • Additional fields: We have added fields for the target company’s cash and equivalents, interest-bearing debt, and book value of preferred stock. Whether you are trying to verify the calculation for the invested capital premium or looking to subtract cash from the target’s invested capital value to calculate enterprise value, you will have the fields available to do so.
  • Expanded quarterly report: Have you seen the enhanced and expanded Control Premium Study quarterly PDF report? You can view a sample issue here.
  • Day pass: The new platform will feature a day pass purchase option instead of the previous single-search purchase option. Now, instead of just purchasing the data for an individual industry, you can access the full data set for an entire 24-hour period.

Contact BVR at sales@bvresources.com with any questions.

Please let us know if you have any comments about this article or enhancements you would like to see.