Module II· Football Field & SensitivitiesAdvanced
Question
How do you adjust the control premium in a cross-method Football Field?
Answer
Mechanics
Trading comps reflect no control premium (equity investments are minority stakes). Precedents include a control premium. The DCF value is 'standalone' — no control premium per se, but it can be extended via synergies. An LBO is acquisition pricing — control is implicit. Adjustment:
- Show trading comps + a control premium (typically 25–30%) to create comparability with precedents.
- Precedents are 'strategic bid' indicators — comparing them directly with trading comps shows the premium range.
Deep diveShow more details
Pitch tip
'Trading comps range $850–1,050m + 25% control premium = $1,060–1,310m, broadly consistent with precedent range $950–1,250m — confirms ~25% sector control premium.'