Dispelling the myths about control premiums
Abstract: Fewer concepts are more widely misunderstood in business valuation than the control premium. For one thing, whether a premium or discount is appropriate depends on the level of value. And even if a control premium is appropriate, quantifying it is a challenge — and is subject to a great deal of debate in the valuation community. This article explains how valuators decide what method is appropriate to determine whether a control premium makes sense.