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.
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Paper provided by globADVANTAGE, Polytechnic Institute of Leiria in its series Working Papers with number
48.
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
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