Control Premium

In a deal scenario, a premium is the difference between the amount paid and the value of the company. This premium usually illustrates the amount of goodwill in the target company and also how much the acquirer is committed to the deal and improving the future performance of the target firm.

Free Resources

To continue learning and advancing your career, check out these additional helpful WSO resources:

• Retained Earnings
• Fraud Triangle
• Accounts Receivable Turnover Ratio
• Marginal Cost Formula
• Nash Equilibrium