New research refutes notion of private-company discounts

BVWireIssue #189-4
June 27, 2018

discounts & premiums
control premium, valuation methodology, control

There is no evidence that unlisted firms sell at discounts compared to listed firms, according to a new paper. This goes against the routine assertion by academics, practitioners, courts, and regulators who generally believe the opposite is true. The researchers say their results “hold under a number of different approaches and after controlling for known determinants of acquisition pricing.”
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