After everything that has been written over the past 20
years on the topic of control premiums, it is
surprising that so many business valuers still cannot
understand why public company shares do not trade as
minority interests, and why it is bad practice to add a
control premium when valuing a private company using
public company data. This paper will further the
arguments against control premiums with some new
observations that will extend and clarify these
concepts. The conclusion of this paper will discuss the
dangers of a Daubert challenge if one is applying
control premiums, both in an accounting and financial
reporting context as well as in more general cases. pdf
2011