Control premium

A control premium is an amount that a buyer is sometimes willing to pay over the current market price of a publicly traded company in order to acquire a controlling share in that company.[1]

If the market perceives that a public company's profit and cash flow is not being maximized, capital structure is not optimal, or other factors that can be changed are impacting the company's share

  1. ^ Damodaran, Aswath. "The Value of Control: Some General Propositions" (PDF). NYU Stern. Retrieved 4 March 2019.

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