When a portfolio company is acquired, the buyer is expected to pay more per share than a minority investor would. There is good reason for this - the buyer is getting more than the investor. The buyer is purchasing the right to control the company. After an acquisition, a buyer can determine a company’s strategy, select which markets to focus on, pick the company’s partners, elect which assets to sell, change the company’s level of debt and so on. An investor typically can influence these decisions but not control them outright.

Acquisition prices are generally higher than prices for investment rounds, reflecting a control premium.