Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Control Premium

Definition

The premium buyers are willing to pay to acquire a controlling share in a business.

See Also

Valuation discounts.

Tips

Control premiums and minority discounts are applied when valuing controlling or minority interests in a business. Control premiums typically range from 20% to 40%.

Related Resources

Why do companies acquire other businesses?