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Creating a Public Monopoly /Negotiating a Purchase Price
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Negotiating a purchase price
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Negotiating a Purchase Price
The privatization of a public monopoly involves negotiating a price for each piece of the monopoly that is privatized. These prices should reflect the value of the monopoly, normally in terms of the market value of its assets, less any liabilities.

There may also be a goodwill element, to reflect the value of the monopoly to its existing owners (in the case of a private monopoly) or the government (in the case of a public monopoly). Where the total current market value of the shares in the business exceeds the total value of its assets, the difference between the two is normally treated as goodwill



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