Why ans is not B ? As under GTM comparable company and subject company both are private so how discount will be applied ?
Share
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
In GTM, DLOC or Control Premium is already applied, so no need to apply when using GTM method.
Hope you get it
Because you will only apply control prem to gpcm method as those are based on public multiples and public multiple are valuation for a minority whereas in GTM if we take multiples of recently acquired pvt company control premium are already incorporated but there are chances that we are taking non controlling stake in a pvt equity company so we need to apply dloc as we don’t have control in that company whereas in gpcm as they are public multiple which itself doesn’t have a control over company so we don’t apply dloc to gpcm