Principles of Private Firm Valuation

125

TABLE 7.5

Control Premium, Value of Pure Control, and Value of Synergy as a Percent of Preannouncement Stock Price

Sample 3

Sample 2

Sample 2

Sample 1 Less

Less Firms with

Firms with Negative

Negative Estimated

Sample 1

Control Premiums: 74

Synergy Value: 58

Original Sample: 86 Firms

Firms in Sample

Firms in Sample

Average

Median

SD

Average

Median

SD

Average

Median

SD

Reported

controlpremium

47

36

66

56

44

65

66

50

70

Pure control

premium

22

16

18

21

15

19

17

15

13

Estimated

synergy

26

18

66

36

24

64

49

34

65

SD

=

standard deviation.