The control premium comes from the interest of the buyer, who understands that the company is not being properly managed and agrees to pay a premium on the acquisition of the company because he believes he will be able to manage better and generate more profits.
This premium is paid for the controller to dispose of the shares / quotas. This means that there is no premium for minority shareholders, except when clauses guarantee certain rights for minority shareholders.
The rule of 20% as a premium for control is not true, as this depends on how much the company can be better managed after the acquisition, so it varies according to the projections and analyzes of the potential buyer.
This way, when a company is very well managed, there is no premium for control, as there will be nothing to improve.
The calculation of the control premium consists of the business valuation of the company in the current scenario compared to another business valuation in a hypothetical but realistic scenario, considering synergies and improvements that increase the company’s results in a consistent and lasting manner. If there is an additional amount in this second valuation, then this is the amount of the premium or premium for the control.