January 10th, 2016
BRAZIL: WHAT RISKS TO FACE IN 2016?
No doubts about, Brazil is a hostile business environment when it comes to understand how businesses work and how people behave.
Brazil is a confluence of people from all over the world. As a continental country, Brazil is a reunion of many countries and a mixture of cultures with prevalence of the Latin Culture installed by the Portuguese directly derived from ancient Rome.
Any business approach must be done carefully and understanding the game played according to the formal and informal rules.
That means when you receive a “Yes” as an answer, could be a “No”. And when you receive a “No” could be a “Maybe”. Read between the lines is crucial if you want to succeed in Brazil.
Know people that know people is important in our culture, however is a road that multinationals must avoid completely and honor their ethics conduct book entirely and the formal laws established in the country.
Brazil is passing through the biggest Federal Police and Federal Justice Attorney investigation of all time with a lot of CEOs from main Construction Brazilian Companies is jail due to formation of a cartel to bribery PETROBRAS, Brazil`s biggest public owned company.
This investigation has started in 2014 and still remains under its 14th phase far away from a conclusion date under the name ‘LAVA A JATO”, which means (EXPRESS CLEANING).
The damage is enormous and far away from an end since the corruption is spread all over the PETROBRAS supply chain and with a lot of politicians of all spheres involved with briberies.
The investigation put the country inside a “stand-by” status with a raise in the unemployment rate due to the lowest industrial production rate of the lasted 10 years. Many industries are suffering to pay their bills and clients are starting to cancel orders.
In Brasilia, country’s capital where the Three Powers (Legislative, Executive and Judiciary) are centered, the climate is of uncertainty since the actual President and its Labour Party do not have majority in the Senate and in the Congress and can be eventually impeached.
Under this complex scenario, Brazil is still a good investment place cause opportunities are on the sight with a closer and detailed analysis.
STRATEGY NOW can supply you with the right strategy to reach out the best opportunities and take advantage of the actual crisis. We operate in the whole Latin America region and we can conduct IN-DEPTH STUDIES to help you determine your future Merger & Acquisition process.
Please contact us to further details, we will be glad to exchange ideas with you.
Our best regards,
RAUL DE MARZIO
STRATEGY NOW Mergers & Acquisitions Advisors Services
Phone: +55 11 4612 0152 [office] and +55 11 94704 9313 [mobile]