At times different businesses bid for others in their own or other industries. Many a times, the motive behind these acquisitions is to make use of possible synergies between the businesses to create value. For example, an apparel manufacturing company may get into retailing in order to get vertically integrated and make additional margins on its business as a whole. Similarly, a steel manufacturer may acquire a coal mine in order to secure fuel supply for its operations. During such times, acquisition of the target company may be strategically very important for the acquirer and thus the acquirer may pay a premium over its intrinsic value. Sometimes the acquirer gets a control of the target and uses its management and operational execution expertise to generate more value. In such cases, the additional price paid by the acquirer to get control is termed as the control premium. Such a premium is generally seen to be given to a majority shareholder of the target which currently has the controlling stake in the target. Another such premium given is for non-compete clause. This clause makes sure that the management and promoters of the target company do not start another such similar businesses in direct competition with the acquirer for a specified amount of time.