Assistance for Asset Valuation

Businesses based in the United States that wish to invest in resources located in Brazil will have to consider all of their financial capabilities before attempting to make a transaction with any other company. Undertaking a financial risk assessment is valued, especially since tax laws in Brazil contrast those of the United States.

Asset valuation is another important concept to undertake before committing to any contracts or transactions. The value of real estate, for example, can vary tremendously based on different factors, such as location and time period. Different valuation models are also used to determine the worth of patents, copyrights, trade secrets, consumer relations or software products.

Another important aspect of financial management processes in Brazil is to consider the price of inflation. Bloomberg reported that consumer prices and inflation rose in December within this country farther than economists predicted. With the government attempting to improve economic growth, prices rose for many consumer products.

Costs increased 0.79 percent in December and annual inflation grew to 5.84 percent, which is a significant rise for Brazil. Even though the federal government has brought forth many changes and attempts at reviving the economy, so far its efforts have proved to be fruitless.

“While Brazil’s economy is expected to grow about 3 percent in 2013, economists have warned that ongoing inflationary pressures could limit the central bank’s ability to use interest rates to boost activity should the economy stumble again this year,” Nasdaq reported. “Brazil’s unemployment rate also remains at record lows, forcing companies to boost wages to attract and retain workers.”

Companies that need additional assistance with handling the legal aspects of financial management in Brazil should contact Brazilian lawyers who have wide experience representing foreign businesses.