2024: Mergerstat Control Premium Study

Annual Review of Acquisition Premiums in U.S. Public Company Transactions

FactSet Mergerstat, Mergerstat Review (2024 ed.) Data period: Calendar year 2023 Premium definition: Percentage difference between offer price and target’s stock price 1 day, 1 week, and 4 weeks prior to announcement Key Findings – 2024 Edition | Metric | 2023 | 2022 | 10‑Year Avg. | |--------|------|------|---------------| | Mean 1‑day premium | 37.2% | 41.5% | 38.9% | | Median 1‑day premium | 29.5% | 32.1% | 31.2% | | Mean 4‑week premium | 43.7% | 48.2% | 45.3% | | Deal count (public targets) | 134 | 162 | 179 | Premiums declined moderately in 2023 vs. 2022, driven by tighter financing conditions and higher cost of capital. Premium by Deal Value (1‑Day Premium) | Deal Size (USD) | Mean Premium | Median Premium | % of Deals | |----------------|--------------|----------------|--------------| | < $100M | 32.1% | 27.4% | 18% | | $100M – $500M | 35.8% | 29.1% | 29% | | $500M – $2B | 38.5% | 31.3% | 26% | | $2B – $10B | 41.2% | 33.8% | 19% | | > $10B | 44.7% | 35.0% | 8% | mergerstat control premium study 2024

Cash deals continue to offer higher premiums, reflecting certainty of value and immediate liquidity. | Industry | Mean Premium | Median Premium | |----------|--------------|----------------| | Technology | 44.2% | 36.5% | | Healthcare | 42.1% | 34.0% | | Energy | 33.5% | 27.8% | | Financials | 31.9% | 26.4% | | Consumer | 35.4% | 29.2% | Annual Review of Acquisition Premiums in U

Larger deals commanded higher control premiums, consistent with historical patterns. | Method | Mean Premium | Share of Deals | |--------|--------------|----------------| | All cash | 39.1% | 62% | | All stock | 33.4% | 18% | | Mixed cash/stock | 36.7% | 20% | 2022, driven by tighter financing conditions and higher

The 2024 edition marks the lowest median premium since 2016 (29.1%). Mergerstat defines the control premium as: (Offer price per share / target’s stock price X days prior to announcement) – 1 Only completed U.S. public company acquisitions are included. Excluded: minority stake purchases, bankruptcy sales, and transactions where target was not traded 30 days pre‑announcement. Suggested Citation (mock) FactSet Mergerstat. (2024). Mergerstat Review – Control Premium Study 2024 . FactSet Research Systems Inc. If you need the actual 2024 report , you must purchase it from FactSet (via their Mergerstat product) or access it through a subscribing university library’s FactSet terminal. Would you like guidance on how to locate the official 2024 Mergerstat Review through academic or professional databases?