Valuing distressed privately held companies in Brazil that export to Europe and the US: The case of a furniture manufacturing company
AbstractThis 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.
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Bibliographic InfoPaper provided by globADVANTAGE, Polytechnic Institute of Leiria in its series Working Papers with number 48.
Date of creation: 27 Oct 2009
Date of revision:
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;
Find related papers by JEL classification:
- M0 - Business Administration and Business Economics; Marketing; Accounting - - General
- M1 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration
- M2 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-07 (All new papers)
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- Black, Fischer & Scholes, Myron S, 1973. "The Pricing of Options and Corporate Liabilities," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 637-54, May-June.
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