Majority transaction

A majority transaction is an acquisition in which the buyer acquires more than 50% of a company's voting rights, obtaining control of strategic decisions. It contrasts with minority transactions, where the buyer acquires a non-controlling stake. In business valuation, majority transactions command a control premium over the minority value — typically 20–40% above the listed minority price. The premium reflects the economic benefits of control: strategic decision-making authority, dividend policy, management appointment and the ability to implement operational improvements without minority approval.

‍

Example: a strategic acquirer pays CHF 58 per share to acquire 100% of a Swiss industrial company trading at CHF 42 per share — a 38% control premium. This premium is justified by anticipated synergies of CHF 8.0 million annually (NPV CHF 45.0 million at 10% WACC), documented in the board's fairness opinion supporting the transaction recommendation to minority shareholders.

‍

Hectelion values majority transactions with a documented analysis of the control premium, justifying the premium paid relative to minority benchmarks and anticipated synergies.