Valuation: Comps & PrecedentsMedium

What is a control premium and how is it typically measured?

Model answer

A control premium is the amount an acquirer pays above a target's pre-deal, unaffected share price to obtain control. It is measured as (Offer price per share − Unaffected share price) / Unaffected…

The full, human-reviewed answer is in the bank.

Sign up free and Daily 10 serves you 10 questions a day from all 2,300+ — or go Pro for unlimited reps.

Pro unlocks every model answer — $19.99/mo.

Also want The 5-Day Rep Program? One short email a day for five days — the out-loud method, start to first offer-ready rep. Free.

Double opt-in: we email you a confirm link first — no confirmation, no emails. Unsubscribe anytime with one click.

More from Valuation: Comps & Precedents

Try the real thing

1 / 3
LBO & Paper LBOEasy

What is a leveraged buyout?

Superday coming up? Take the cheat sheet.

The technicals and stories to have cold before you walk in — free, one email, no mailing list.

Free tier: 20 cards + 10 daily reps + ALL drills — no credit card required.