Bulls vs. Bears vs. COVID-19: How do Control Premiums Change?

New York (6 April 2020)

It may be too early in this market cycle to pinpoint the effect on control premiums, but in analyzing average and median control premium data vs. the DJIA since 1996, VRC  begins to shed light on potential expectations.

The article discusses:

  • COVID-19 is impacting global markets and triggering a potential for interim goodwill impairment testing.
  • In light of the current market downturn, can we anticipate the impact on control premiums?
  • VRC analyzed control premium data vs. the DJIA over the 24-years from 1996 through 2019, to understand how sharp changes in the stock market impacted control premiums.
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