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.