You are the CEO of a private company and want to buy it. There is one...

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Finance

You are the CEO of a private company and want to buy it. Thereis one major shareholder who owns 70 percent of the firm. Theremaining 30 percent is held by oceanic shareholders. Based on aDCF model, you estimate the base value of the firm to be $100million. This excludes any liquidity discount and/or controlpremium. Based on your observations of the market, liquiditydiscounts are about 30 percent and control premiums are about 15percent for similar deals. Your firm has 80 million sharesoutstanding.
What would you offer to pay in total and per share to thecontrolling shareholder? To the oceanic shareholders?What if itwere not a private company but a public company. Show how wouldthat change your calculation and answers?
Be sure to caluclate the DLOM/liquidity factor first then thevalue of the control/minority. Please make an excel chart.

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You are the CEO of a private company and want to buy it. Thereis one major shareholder who owns 70 percent of the firm. Theremaining 30 percent is held by oceanic shareholders. Based on aDCF model, you estimate the base value of the firm to be $100million. This excludes any liquidity discount and/or controlpremium. Based on your observations of the market, liquiditydiscounts are about 30 percent and control premiums are about 15percent for similar deals. Your firm has 80 million sharesoutstanding.What would you offer to pay in total and per share to thecontrolling shareholder? To the oceanic shareholders?What if itwere not a private company but a public company. Show how wouldthat change your calculation and answers?Be sure to caluclate the DLOM/liquidity factor first then thevalue of the control/minority. Please make an excel chart.