Minority discount is an economic concept reflecting the notion that a partial ownership interest may be worth less than its proportional share of the total business.
For example, ownership of a 51% share in the business is usually worth more than 51% of its equity value—this phenomenon is called the premium for control.
This is so because this minority ownership limits the scope of control over critical aspects of the business.
[3] This is why take-private transactions involve a substantial premium over recently quoted prices.
The activism can take several forms: proxy battles, publicity campaigns, shareholder resolutions, litigation, and negotiations with management.