There was no overall change in the median paid control premiums from 3Q07 to 4Q07, according to a recent search of the Mergerstat®/BVR Control Premium Study™. Surprisingly, given the way markets ended last year, the median control premium actually increased from 2006 to 2007—albeit less than a percentage point, from 17.2% to 18.1%.
What made more sense: Median control premiums for the first half of 2007 were 18.6% but dropped to 15.8% in the second half of the year. And what made the most sense: The total number of deals dropped dramatically, from 508 in the year’s first half to 143 in the second.
Automatic implied minority discounts. With our continued efforts to improve BVMarketdata (see BVWire #66-1), searches at the Mergerstat/BVR Control Premium Study database are now faster and more efficient, thanks to compressed data and the engine’s ability to accommodate larger searches. And in the near future, instead of users having to calculate the implied minority discount themselves, the database will automatically calculate it for them; this new feature will accompany requests for both summary results (aggregate data) and individual transactions.
To find out more about using the database to calculate control premiums, implied minority discounts, and valuation multiples, tune into tomorrow’s webinar, “Getting the Most from the Mergerstat/BVR Control Premium Study,” featuring Shannon Pratt, Alina Niculita, Rob Stutz, and Adam Manson. Co-sponsored by BVResources and NACVA, the event will include the panelists’ live searches of the database and an “ask the experts” session. An extra bonus: Attendees will have free access to the database for five days following the March 20th webinar. To register, click here.
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