Mergerstat Control Premium Study 2024 -

A control premium is the difference between the price paid for a controlling interest in a company and the market price of the company's publicly traded shares. It represents the value that a buyer is willing to pay to gain control of a company, often due to the potential for strategic, operational, or financial synergies. Control premiums can vary significantly depending on factors such as industry, company size, growth prospects, and market conditions.

No study is perfect, and thoughtful users of the should note the following:

| Deal Size (USD) | Mean Premium | Median Premium | % of Deals | |----------------|--------------|----------------|--------------| | < $100M | 32.1% | 27.4% | 18% | | $100M – $500M | 35.8% | 29.1% | 29% | | $500M – $2B | 38.5% | 31.3% | 26% | | $2B – $10B | 41.2% | 33.8% | 19% | | > $10B | 44.7% | 35.0% | 8% | mergerstat control premium study 2024

Startups and private firms use the minority discount derived from Mergerstat to value common stock relative to preferred equity with control rights. The 2024 implied discount of ~25.4% is a starting benchmark, though company-specific factors (voting power, board composition) will modify it.

| Year | Median 1-Day Premium | Notable Context | |------|----------------------|------------------| | 2019 | 29.3% | Pre-pandemic peak | | 2020 | 27.8% | COVID uncertainty | | 2021 | 36.9% | Zero interest rates, SPAC competition | | 2022 | 30.1% | Rate hiking begins | | 2023 | 32.5% | Stabilization after inflation shock | | 2024 | 34.1% | Strategic dealmaking returns | A control premium is the difference between the

While aggregate numbers are useful, the study’s sector-level data reveals the true strategic shifts. 2024 was a year of bifurcation: certain industries paid substantial premiums, while others lagged.

For the valuation practitioner, the study reinforces a timeless mantra: control has value, but that value is not uniform. The 2024 data gives you the empirical anchor—your judgment, industry analysis, and deal-specific adjustments provide the precision. No study is perfect, and thoughtful users of

The 2024 FactSet/BVR Control Premium Study, formerly the Mergerstat Review, provides comprehensive, multi-year empirical data on premiums paid for controlling interests in public companies. Released in May 2024, the study offers insights across 50 industries and includes data on strategic versus financial buyers, with specific analysis of SPAC transactions. For full details, visit Business Valuation Resources Business Valuation Resources Control Premium Study Quarterly