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An executive for a NYSE listed firms with dispersed shareholders, none of whom has more control influence than others, is considering the acquisition of three
An executive for a NYSE listed firms with dispersed shareholders, none of whom has more
control influence than others, is considering the acquisition of three possible firms, which are
identical to the buyer, except for the following:
Firm A: publich beld company with a majority sbarebolder.
Firm B: privateby beld company with dispersed shareholders.
Fim C: buy own company througb a leveraged byout.
In class, we discussed the scenarios for valuing control and illiquidity for these three potential
companies that the executive is consider to acquire. A summary chart of the valuation from
class is presented below:
Now, assume that executive reassess the discount for illiquidity to be while the control
premium to be and that all three firms require a control block of only Can you
please value the control block, and the minority block prices, for each of the three firms?
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