Case Name :      Milagrol Ltda.

Authors :           Marc Lipson

Source :             Darden School of Business

Case ID :           UV2541

Discipline :        Finance

Case Length :    10 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

A privately held U.S. plumbing parts manufacturer is negotiating the purchase of a Brazilian plumbing manufacturer specializing in water conservation. The case provides sufficient information to value this cross-border acquisition and includes a brief summary of valuation techniques in this context. A particularly rich discussion arises from two points: A forecast of exchange rates from a forecasting company differs from forecasts based on inflation, and two methods are suggested for dealing with country risk (sovereign spread and scenario analysis).