Quite a bit, it turns out—30%. Current data (including Q1 2019 updates)
from the
FactSet Mergerstat/BVR Control Premium Study
(CPS) show that UK buyers value the future benefits of controlling interests
higher than nearly anywhere else in the world (the graph below compares
acquisition premiums and the related implied minority discounts from the
leading economies). The premium is measured as the percent difference
between the target’s prior trading price and the per-share takeover price
in the acquisition. The implied minority discount is the inverse of this—it
is the percentage difference between the per-share takeover price in the
acquisition compared with the target’s prior trading price. Business
valuers use these premia to benchmark the value of private assets where
control changes hands.
CPS contains nearly 12,000 public company transactions from companies traded on every major world exchange and details up to 57 data points and up to five valuation multiples for each transaction. Most transactions are mergers and acquisitions with 100% shares acquired and include controlling takeovers and buyouts.