Control premium and minority discounts in Polish business valuation practices – evidence from research
Control premium and minority discounts in Polish business valuation practices – evidence from research
Author(s): Katarzyna Byrka-Kita, Michał GrudzińskiSubject(s): National Economy, Business Economy / Management, Sociology of Culture, Financial Markets, Accounting - Business Administration, Sociology of Politics
Published by: Wyższa Szkoła Informatyki i Zarządzania z siedzibą w Rzeszowie
Keywords: business valuation; control premium; minority discounts; ownership structure; valuation practice;
Summary/Abstract: The paper presents the results of a survey of business valuation practice in Poland. The aim of this study was to assess the premium for control as well as discounts for minority interests by practitioners involved in the valuation of companies in Poland. The survey was conducted on a sample of 191 respondents between February and April 2011. The population of entities under survey consists of: authorized NewConnect3 / Catalyst advisers, brokers, valuation analysts working for leading consulting firms, and experts appointed by the court. The evidence from the research demonstrates that most of respondents do not know how to apply premium control and minority discounts in business valuation. Incorrect approaches to the application of control premiums or minority discounts reflect that this area of valuation lacks thorough analysis in the Polish market. As a consequence, particularly in the case of lawsuits it may cause unjustified transfers of value between the parties.
Journal: Financial Internet Quarterly
- Issue Year: 13/2017
- Issue No: 1
- Page Range: 1-14
- Page Count: 14
- Language: English
