Control Premia

Aswath Damodaran, Professor of Finance at Stern School of Business, New York University
Kenneth Woo, Regional Research Manager, FactSet Mergerstat
Anna Berthelius, European Mergers and Acquisitions Research Analyst, FactSet Mergerstat

Telephone Dial-In Audio Conference
Thursday, August 24, 2006
10:00am-11:40am PDT/11:00am-12:40pm MDT/12:00pm-1:40pm CDT/1:00pm-2:40pm EDT

Presented by Business Valuation Resources, LLC
Earn TWO INTERACTIVE CPE credits for participating in this conference

PRICE: $249.00 for a single dial-in connection. Use your conference room and the whole office can listen in. Two CPE credits are available for each additional listener sharing the same phone connection - only $49.00 per person.

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Why Should you Attend?

Aswath Damodaran, a nationally recognized expert on Control Premia, shares his insight into determining the value of control.  His seminal work in this area has helped dispel the notion of the “20-30% control premium” rule of thumb.  During this teleconference, Professor Damodaran will present key aspects of his research and work with Wall Street Firms.

Kenneth Woo and Anna Berthelius will provide an overview of the Mergerstat Control Premium Study (CPS) and present answers to seven common questions concerning CPS' scope of capabilities. As always, this interactive session offers listeners the chance to ask questions directly to the panel of experts.

Learning Objectives:

  • Understand the most critical factors that affect Control Premia analyses
  • Learn different methods that are used to determine Control Premia
  • Understand the most relevant aspects of the Mergerstat Control Premium Study
  • Learn how to most effectively use the Control Premium Study in your valuation work

Program Outline:

Slide Presentation by Aswath Damodaran on The Value of Control: Some General Propositions

  • Why Control Matters
  • What is the Value of Control
  • The Value of Gaining Control
  • Proposition 1: The Value of Control is not 20%
  • Proposition 2: To Make the Control Premium Real, You Have to Act
  • Proposition 3: Whether You Add a Control Premium to a Valuation Will Depend on How the Valuation is Done
  • Proposition 4: The Premium Paid in Public Acquisitions is Not a Control Premium
  • Computing the Premium Can Be Tricky
  • Attributing Motive to Premiums is Difficult to Do
  • Acquirers are Not a Random Sample

Kenneth Woo and Anna Berthelius discuss Mergerstat's Control Premium Study's capabilities and applications and give answers to seven common questions concerning CPS, such as:

  • Describe the proper use of the Mergerstat Control Premium—how should it be selected for a given engagement?
  • It seems the unaffected price plays a very large role in calculating the control premium—can you elaborate on how it is determined and is there a methodology anyone can replicate?
  • How does Mergerstat determine the four transaction types?
  • What is the source of the information in the Control Premium Study?

Audience Q & A Session

Featured Panel:

Aswath Damodaran, Professor of Finance

Aswath Damodaran is Professor of Finance at Stern School of Business, New York University. Before coming to Stern, he also lectured in Finance at the University of California, Berkeley.

Professor Damodaran received a B.A. in Accounting from Madras University and a M.S. in Management from the Indian Institute of Management. He earned an MBA (1981) and then PhD (1985), both in Finance, from the University of California, Los Angeles.

Professor Damodaran's contributions to the field of Finance have been recognized many times over. He has been the recipient of Giblin, Glucksman, and Heyman Fellowships, a David Margolis Teaching Excellence Fellowship, and the Richard L. Rosenthal Award for Innovation in Investment Management and Corporate Finance.

His skill and enthusiasm in the classroom garnered him the Schools of Business Excellence in Teaching Award in 1988, and the Distinguished Teaching award from NYU in 1990. His student accolades are no less impressive: he has been voted "Professor of the Year" by the graduating MBA class five times during his career at NYU.

In addition to myriad publications in academic journals, Professor Damodaran is the author of several highly-regarded and widely-used academic texts on Valuation, Corporate Finance, and Investment Management.

Professor Damodaran currently teaches Corporate Finance and Equity Instruments & Markets. His research interests include Information and Prices, Real Estate, and Valuation.

Kenneth Woo

Recently promoted to the role of Regional Research Manager, Kenneth is responsible for leading the North American research group in their work displaying trends and financial information relating to transactions in the M&A marketplace. His background began as a Research Analyst at FactSet Mergerstat where he focused on transactions in the U.S. region. He was shortly promoted to the role of Senior Research Analyst, at which he served in a supervisory role in the creation and standardization of global M&A research in 2003. In addition, Kenneth conducted a study which illustrated control premiums paid for public companies across leading industries. In 2005, Kenneth took an active role in the development of content focusing on transactions in the private equity marketplace.

Kenneth Woo received his B.A. in Business Administration with an emphasis in the field of finance from Loyola Marymount University, graduating with honors.

Anna Berthelius

Anna Berthelius has worked as a European Mergers and Acquisitions Research Analyst at FactSet Mergerstat since 2003. She specializes in analyzing mergers and acquisitions in Sweden, Denmark, Norway, Finland, and Greece. In addition, she provides quantitative trend analysis on the European M&A market for FactSet Mergerstat's publication Flashwire Monthly, which reaches a wide audience of investment bankers, management consultants, M&A lawyers, and business valuations professionals in the U.S. and abroad.

Since December 2004, Anna has been in charge of producing the quantitative research reports contained in the quarterly FactSet Mergerstat Control Premium publication.

Anna received a Bachelor of Science in Business Administration at the University of San Francisco's McLaren School of Business and Management in 2003.

CPE Credit Information:
Earn 2 Interactive CPE Credits (Consulting Services)
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