Navegando por Autor "Andrade, Daniel Pecanka de"

Agora exibindo 1 - 1 de 1

The discount on the valuation of private companies in the American and European markets.
(2024) Andrade, Daniel Pecanka de
This study investigates the discount applied to the valuation of private companies in the American and Western European markets. I perform a multivariate regression analysis on M&A transactions from 1993 to 2024 to see the factors that influence the valuation multiples, followed by an estimative of the private company discount using the acquisition approach. The investigation reveals that private companies are generally traded at a discount compared to their public counterparts, a phenomenon attributed to the illiquidity premium and other market-specific factors. By comparing the North American and European markets, the research indicates a higher discount in the Western European market. The findings contribute to the existing literature by providing a more nuanced understanding of how private company discounts are influenced by regional market dynamics. This study is particularly valuable for M&A professionals and investors, enhancing the existing methodologies for valuing privately held firms. The dissertation emphasizes the importance of considering liquidity and marketability in private company valuation, enriching the theoretical and practical perspectives on the subject.