Valuation & Finance
Control Premium
The additional value a buyer pays over minority-comp valuation to secure full control — sellers should demand this premium rather than accepting minority-comp pricing on a 100% sale.
Seller Example
Promoter of a Mumbai specialty retail chain rejects the buyer's initial 6x EBITDA minority-comp offer, successfully arguing for a 20% control premium (7.2x) given the buyer is acquiring full board control and the right to execute an immediate multi-city rollout on the seller's existing infrastructure.