When an MNC considers a partial acquisition, the valuation of the target will be conducted the same way whether the MNC acquires control of the target or only a small portion of its shares.

Question

Quizplus · Accepted Answer

The valuation of a target in a partial acquisition can differ significantly depending on whether the MNC acquires control of the target or only a small portion of its shares. Acquiring control often involves a control premium, and the valuation may incorporate synergies and strategic benefits that would not apply to a non-controlling, minority interest.

When an MNC Considers a Partial Acquisition, the Valuation of the Target