Mergers and Acquisitions (M & A) are regular operations in Brazil. Corporation Law and Federal Law for Limited Liability Companies regulate the procedures for mergers, consolidations, spin-off, acquisitions and incorporations.
(FAST PITCH PRESS) Date Released: 11/21/2007
When considering a merger or acquisition operation in Brazil, Great Start strongly recommend that you get legal and auditing assistance to study the target company, to negotiate and to draft a letter of intentions and applicable contracts, to ensure that Brazilian legal requirements are observed.
Assessing the liabilities of the target company is important as it affect the purchasing price in the transaction. Legislations in Brazil, especially tax, labor and environmental are very complex and burdensome and lawsuits involving such matters in Brazil may produce a severe impact in the decision making process. Reliable local support is therefore recommended.
More than 70% of Brazilian companies are family-owned and managed by their owners. Only in larger companies there are professional executives. Negotiations in Brazil never follow a standard pattern and normally vary on a case-by-case basis, certainly when the owners conduct negotiations. Lawyers usually assist in the operation. Contracts in Brazil are on a less formal basis than the extensive, signed agreements used in the United States.
It is important to emphasize that the jurisdiction and governing law for business transactions in Brazil are regulated by the Introductory Law to the Civil Code, the Civil Code and the Code of Civil Procedure, all of which are federal laws and applicable throughout the country. Reliable local support is therefore recommended. Through our associates, Great Start can give you all the research, advice and execution for Mergers and Acquisitions in Brazil.
More information: Great Start in Brazil
Friday, November 23, 2007
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