<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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 NewConnect<xref ref-type="fn" rid="j_fiqf-2016-0014_fn_001_w2aab3b7ab1b6b1ab1aaAa"><sup>3</sup></xref> / 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.</p></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.

Control Premium and Minority Discounts in Polish Business Valuation Practices – Evidence from Research

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

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...

Control Premium and Minority Discounts in Polish Business Valuation Practices – Evidence from Research

Publié en ligne: 16 févr. 2018

Pages: 1 - 14

Reçu: 18 mars 2015

Accepté: 02 janv. 2017

DOI: https://doi.org/10.1515/fiqf-2016-0014

Mots clés
business valuation, control premium, minority discounts, ownership structure, valuation practice

© 2017 Katarzyna Byrka-Kita et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Control Premium and Minority Discounts in Polish Business Valuation Practices – Evidence from Research

Publié en ligne: 16 févr. 2018

Pages: 1 - 14

Reçu: 18 mars 2015

Accepté: 02 janv. 2017

DOI: https://doi.org/10.1515/fiqf-2016-0014

Mots clésbusiness valuation, control premium, minority discounts, ownership structure, valuation practice

© 2017 Katarzyna Byrka-Kita et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Mots clés
business valuation, control premium, minority discounts, ownership structure, valuation practice