Valuing distressed privately held companies in Brazil that export to Europe and the US: The case of a furniture manufacturing company

Ronald Degen ()

No 48, Working Papers from globADVANTAGE, Polytechnic Institute of Leiria

Abstract: This paper explains the valuing of distressed privately held companies in Brazil based on the acquisition process of a furniture manufacturing company that exports 90 percent of its furniture to Europe and the US. The three valuation approaches--discounted cash-flow valuation, relative valuation and contingent claims valuation--are described, as are the shortcomings of each approach in the valuation of distressed privately held companies. The discounted cash-flow approach is detailed for the valuation of a distressed privately held company in Brazil that exports to Europe and the US.

Keywords: valuing distressed companies; valuing privately held companies; valuing companies in Brazil that export to Europe and the US; determining the average cost of capital; determining the weighted cost of capital for companies in Brazil that export to Europe and the US (search for similar items in EconPapers)
JEL-codes: M0 M1 M2 (search for similar items in EconPapers)
Date: 2009-10-27
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Persistent link: https://EconPapers.repec.org/RePEc:pil:wpaper:48

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