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A Pure Control Premium Is the Value the Acquirer Believes

question 67

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A pure control premium is the value the acquirer believes can be created by replacing the target firm's incompetent management, by changing the strategic direction of the target, by gaining a foothold in a market not currently served, or by achieving unrelated diversification.


Definitions:

Actions

The steps or measures taken to achieve a particular goal, often planned and executed to effect change or produce a desired outcome.

Business

Commercial activity where goods or services are exchanged for one another or for money, with the main aim of earning profits.

Education Level

The highest degree or stage of formal learning or schooling that an individual has completed.

Business Owners

Individuals who own and oversee the operations of a business entity.

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