How high were M&A premiums last year? See the five highest premiums offered


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.

 

Buyer
Seller (or unit sold) Equity premium
Koldeck Inc./Chen/
Koldeck Inc.
1,066.7%
Educational Testing Service Inc.
Questar Assessment Inc.
761.5%
Windstream Holdings Inc.
Broadview Networks Holdings Inc.
458.4%
Teleflex Medical Canada Inc.
Pyng Medical Corp.
423.4%
First Creative International Ltd.
POW! Entertainment Inc.
382.7%

 

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.

 

Sign up for the BVWire newsletter

 


Categories