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You are interested in investing in a private company. Based on earnings multiples of similar publicly traded firms, you estimate the value of the private
You are interested in investing in a private company. Based on earnings multiples of similar publicly traded firms, you estimate the value of the private company's stock to be $ per share. You plan to acquire a majority of the shares in the company. The expected control premium is percent, while the marketability discount for such a firm is percent. The discount for the key person, one of the founders who may leave the firm upon your control of the firm, is percent. What price should you be willing to pay for these shares?
$ per share
$ per share
$ per share
$ per share
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