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Control premiums when valuing a business and shareholdings

16 January 2019 / Trevor Slack
Issue: 4679 / Categories: Comment & Analysis
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Losing control

KEY POINTS

  • The arguments for including a control premium when valuing shares are usually flawed.
  • Control premiums from public company studies should not be inferred to private companies.
  • Most companies are managed optimally at least most of the time.
  • Corporate governance theory and the exercise of control.
  • Shareholders own shares not corporate assets.
  • Institutional frameworks affect...

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