This article aims to give a contribution to the issue of economic ratio of minority discount valuation due to lack of control in the transactions of minority shares, and specifically analyzes the legitimateness of such evaluation. To this end, we define the concept of minority discount for lack of powers and we analyze the economic reasons that motivate its valuation. In particular, we highlight that the reason behind this type of discount lies in the inability of the minority buyer to gain management prerogatives that controlling stockholders have (private benefits of control). Finally, we draw some conclusions on the issue.
Celli, M. (2014). The legitimateness of minority discount for lack of control in share transactions. In Proceedings of the 18th IAMB Conference, Roma Tre University, Rome, Italy.
The legitimateness of minority discount for lack of control in share transactions
CELLI, MASSIMILIANO
2014-01-01
Abstract
This article aims to give a contribution to the issue of economic ratio of minority discount valuation due to lack of control in the transactions of minority shares, and specifically analyzes the legitimateness of such evaluation. To this end, we define the concept of minority discount for lack of powers and we analyze the economic reasons that motivate its valuation. In particular, we highlight that the reason behind this type of discount lies in the inability of the minority buyer to gain management prerogatives that controlling stockholders have (private benefits of control). Finally, we draw some conclusions on the issue.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
