Business Mergers

Business mergers in Brazil are becoming more common and a Brazilian law firm can provide the necessary information and legal representation for both parties that are committing to a transaction of property, business merger or acquisition.

A report from the research firm pWC shows that 746 merger transactions took place in 2011 within Brazil’s territory. While this did not surpass previous numbers, it did illustrate a significant stronghold in business development and expansion throughout the country.

In fact, the largest number of transactions took place in December of 2011, which means there may be overlap at the end of 2012 with regard to merger and acquisition activity. A press release dispensed by glendonTodd Capital LLC, a private equity firm, announced that Aztec Systems, Inc. – an IT outsourcing provider – and Toutatis Client Services – a technology company – have formed a merger.

This merger has formed an international business process and IT outsourcing company and the complete sharing of assets will take place within the first quarter of 2013. This merger is the perfect example of foreign businesses based in the United States that open up facilities in Brazil.

“TAS will offer a robust platform of complementary information technology and business process outsourcing services to middle market and multinational companies throughout the Americas. The company has a unique opportunity to capture … market demand by enhancing its scope of product offerings and geographic footprint. Our platform will give customers geographic coverage, international management capabilities and significant operations expertise,” Todd Furniss, CEO and Managing Partner of glendonTodd, said in the company press release.

By working with a Brazilian attorney, businesses based in North America will be able to gain advantages necessary to expand their services into Brazil.

Brazilian Commercial Law

Companies attempting to develop mergers or incorporations in Brazil will need to follow the business laws of this country, which may be why speaking with a knowledgeable attorney at a Brazilian law firm could be beneficial.

Brazilian commercial law identifies a wide number of business entities that can be established in this country legally. While some may be similar or even identical to the ones offered in the United States and European countries, others are more geared toward Brazilian culture.

The types of business entities that may be established in Brazil include general partnership, limited partnership, limited liability company, corporation, limited corporate partnership and other types of company establishments.

The Economist reported that Brazil may be a more challenging country to develop company relations, but a new law has been established to allow business owners to create a single-holder limited-liability firm.

“It was quick and easy because I didn’t have to hunt for a partner,” Taise Litholdo, an architect, told the source regarding the new law and his ability to form a business.

This new law, which was initiated in January 2012, has brought more capabilities and simplified business owners’ lives. Before this legislation took hold, in order to open up a small business in Brazil, professionals needed at least two partners. By complying with this requirement, business owners were able to open a limited-liability company.

Foreign investors and business executives attempting to conduct transactions, mergers or acquisitions in Brazil should consider consulting a Brazilian attorney specializing in business developments and expansions.

Additionally, law firms in Brazil can provide firms with quality legal representation when a dispute or lawsuit arises.

Internet Laws Changes

Businesses working in Brazil and negotiating contracts and transactions will need to follow the laws of the land. The Brazilian legal system incorporates differing legislation from that of the United States or other countries, as it is partially based on the history and culture of a different nation. In order to gain more consumers, companies today are moving toward internet-based marketing and utilizing cost-effective ways of social media networking.

However, there are various laws that govern the Internet in Brazil as well as other countries. The Brazilian government is currently in the midst of proposing and developing an Internet Bill of Rights, according to the Knight Center for Journalism in the Americas.

The vote on the final outcome was postponed at least four times and has been put forth to the Chamber of Deputies on November 13. The biggest problem has been a statement in Article 15 of the bill that states a court order is unnecessary for copyright infringement cases.

This is clearly problematic, as businesses need to ensure their patents and copyrights are protected even in the online world. Another legislation called the Civil Regulatory Framework for the Internet shows basic principles meant to protect the rights and responsibilities of users. It also keeps internet intermediaries, such as social media sites, hosting platforms, blog owners, and internet service providers from being responsible for illegal or duplicated information posted on their page by a user.

American businesses working with Brazil will need to follow all internet laws in order to avoid disputes, accusations or even lawsuits. An experienced, knowledgeable Brazilian attorney working for a law firm in Brazil will be able to provide the necessary expertise for companies that need assistance with internet law.