The amount an investor will pay to acquire control of a company, typically an amount higher than the current market value of the company. An investor seeking to acquire control of a company is highly motivated, and is typically willing to pay more; this often is comes into play when one company is trying to acquire another, and is trying to convince the second company to agree to the deal. The amount above the market price that the investor offers for the shares is known as the control premium.
Related information about control premium:
- Control premium - Wikipedia, the free encyclopedia
Control premium is an amount that a buyer is usually willing to pay over the current market price of a publicly traded company. Contrary to a widely held view, ...
- What is control premium? definition and meaning
Definition of control premium: The amount an investor will pay to acquire control of a company, typically an amount higher than the current market value of the ...
- Control premium
A control premium is the amount by which the market price of shares is exceeded by the price paid to buy enough shares to take control of a business. Buying ...
- The Value of Control: Some General Propositions
the control premium should reflect the change in value that will come from ... The value of control will vary across firms: Since the control premium is the ...
- Mergerstat - Control Premium Minority Discount and Merger and ...
FactSet Mergerstat®/BVR Control Premium Study™ is an online searchable database that generates empirical support for quantifying control premiums, implied ...
- Control Premiums, Minority Discounts, and Marketability Discounts
Whether anyone will pay a premium for a controlling interest (a control premium) depends largely upon whether the potential buyer believes he or she can ...
- Control premium in simple English
In this article, we will examine why a control premium is paid in successful takeovers and how this premium is reflected in a valuation. We will also provide some ...
- Control premium - Financial Dictionary - The Free Dictionary
An amount paid to gain enough ownership interest to control a corporation or other entity.This would typically be an amount in excess of the simple fair market ...