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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nuno Reis).
If references are entirely missing, you can add them using this form.