FinancialAnaly

The control premium is used depending which method you used as the benchmark.

I think the guide line transaction method is used for companies acquiring a controlling share. So if you are buying a small portion of the company you would need to add a Discount for Lack of Control when using a benchmark that is for controlling shares. If you were to buy a controlling share should would not need to add a premium because it is already included in the multiple.

Another method a minority purchase as a benchmark. If you were to use this benchmark for a controlling share then you would ass a control premium to the multiple.