Control Premium Study 2021
RSM’s 2021 Control Premium Study - a study of 605 successful transactions and schemes of arrangement in Australia and 131 in New Zealand, completed between 1 July 2005 and 31 December 2020.
In 2010 we released our inaugural study in which we analysed the implied control premiums observed in successful takeovers and schemes of arrangement completed in Australia, with expanded dataset studies issued in 2013 and 2017.
This study covers the 15.5 year period to 31 December 2020 and provides a comprehensive insight into change of control transactions involving ASX listed, and for the first time, NZSX listed companies. More specifically, the implied premiums that acquirers are willing to pay over and above the target’s share price.
This study analyses the relationship between control premiums and several critical market factors. These factors include industry sector, consideration type, transaction type, timing, toehold and market capitalisation, among others. Our results indicate that control premiums are influenced by each of these factors to varying degrees and at different times in the economic cycle. This study also contains analysis on the impact of COVID-19 on the M&A market.