Takeover Premium is the difference between the market price (or estimated value) of a firm and the actual price paid by a buyer to acquire the firm. Firstly, the premium represents the additional value of owning 100% of a company in a merger or acquisition and is also known as the control premium. The control premium is the additional benefit an acquirer receives (compared to an individual shareholder) from having full control over the business. Secondly, the premium may represent potential synergies expected by the acquirer from the transaction through a combination with the existing complementary assets of the acquirer.