Implied minority discount added to Mergerstat/BVR database

BVWireIssue #67-1
April 2, 2008

Last week’s BVWire™ uncovered a surprising statistic: A live poll conducted during the recent BVR webinar, “Getting the Most from the Mergerstat®/BVR Control Premium Study™” revealed that most attendees (41%) use the database primarily to calculate a minority discount, while a quarter (25.6%) use it for the control premium and 10.3% use it to calculate the valuation multiples.  To accommodate the majority of users, we’ve added a new feature.  The database now calculates the Implied Minority Discount (IMD) automatically and includes it on every transaction report and in the summary statistics on the search results page.  The IMD is calculated using the Mergerstat control premium as follows:  1 - [1/(1 + Mergerstat control premium)].  To see the improvement, click here.

Expanded Mergerstat offerings.  The Mergerstat/BVR link at BVMarketData now offers these new sections:

  • The Mergerstat® Review is the annual, comprehensive source on the M&A market that delivers data on private and public companies in the U.S. as well as cross–border transactions. The latest (2008) edition is ready now and makes an excellent complement to the database.
  • Flashwire Monthly instantly delivers M&A statistics and analysis—including the latest U.S. deal activity by industry—in a monthly PDF, plus extra, quarterly reports on Asian and European transactions.

Subscribers to both will save substantially—up to $295.  To find out more, check out the article by Shannon Pratt on the difference between the Mergerstat/BVR Control Premium Study and the Mergerstat Review, available here.

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