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

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  • Ronald Jean Degen

    () (International School of Management Paris)

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.

Suggested Citation

  • Ronald Jean Degen, 2009. "Valuing distressed privately held companies in Brazil that export to Europe and the US: The case of a furniture manufacturing company," Working Papers 48, globADVANTAGE, Polytechnic Institute of Leiria.
  • Handle: RePEc:pil:wpaper:48
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    File URL: http://globadvantage.ipleiria.pt/files/2009/10/working_paper-48_globadvantage.pdf
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    References listed on IDEAS

    as
    1. 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 637-654, May-June.
    Full references (including those not matched with items on IDEAS)

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    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;

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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