This dissertation addresses the topic of the valuation of a financially distressed company in a M&A transaction by a private equity investor. First differences be-tween standard and distressed M&A-transactions are discussed. This is followed by enterprise valuation approaches of the scientific literature, which are present-ed and valued in course of this thesis. The empirical part comprises interviews with 10 investment professionals of Austrian and international private equity funds (located in Germany and the United Kingdom) regarding specifics of distressed M&A-processes and the valuation of such companies. The interviews were transcribed and assessed. Finally, in accordance with the resulting evidence, guidance for the distressed target valuation by private equity-investors in course of such a transaction is presented in-form of a case-study. This approach comprises a DCF-approach taking into account default probabilities dependent on ratio based credit ratings and a multiple-based exit-value.