How much is business control worth?

BVWire–UKIssue #2-1
May 7, 2019

discounts & premiums
control premium, discounts & premiums, takeover premia

A new control premium study published in M&A Review examines 589 takeover premiums of closed European transactions that occurred between 2005 and 2016. The study can help business valuators support their conclusions. Korbinian Eichner (a professor at Hochschule Pforzheim, who previously did corporate valuation work for KPMG in Zurich) examines the substantial impact of both the acquirers’ strategic considerations and target firms’ financial characteristics on the level of takeover premiums, according to the paper. Eichner concludes that ‘although every deal is unique in its own way, there are factors which correlate strongly with historically observable premiums paid.’
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