Business appraisers commonly use statistics on M&A premiums to calculate a control premium or minority discount. In addition, they can provide a useful reference for investment bankers negotiating an acquisition price. Each year, BVR publishes a complete analysis of the previous year’s M&A activity including comprehensive statistics on control premiums. Just how far were last year’s buyers willing to go above the publicly traded share value with their offers? Let’s take a look at the five highest premiums offered for transactions announced in 2017 (excluding sellers operating under Chapter 11), excerpted from the 2018 FactSet Mergerstat Review.
||Seller (or unit sold)||Equity premium|
|Educational Testing Service Inc.
||Questar Assessment Inc.
|Windstream Holdings Inc.
||Broadview Networks Holdings Inc.
|Teleflex Medical Canada Inc.
||Pyng Medical Corp.
|First Creative International Ltd.
||POW! Entertainment Inc.
You can find additional statistics on M&A activity, including premium over enterprise value by industry sector and a host of other factors, in the 2018 FactSet Mergerstat Review.