Valuation & Finance
Control Premium
The additional percentage over a minority/market valuation a buyer pays to acquire a controlling stake with full decision-making rights.
Buyer Example
Buyer benchmarks a Mumbai specialty retail chain at 6x EBITDA on a minority-comp basis but pays a 20% control premium (effectively 7.2x) to secure 100% control and board rights needed to execute a rapid multi-city rollout immediately post-acquisition.