• Fernanda Siqueira

Risk assessment: learn with whom you negotiate in Brazil



When your company is in negotiation to close a new business, the first concern that comes to mind is transaction security, and not always the financial information raised are sufficient to give the full picture of the new partner's actual situation.


To avoid doing business with parties you do not actually know it is possible to use a famous tool in the corporate environment but least used in legal procedures: the legal due diligence.


Legal due diligence consists on a legal investigation with the purpose of knowing the actual legal situation of the company with which you want to do business. Through a thorough investigation of the legal proceedings brought against this company, it is possible to know how much of its assets are involved in lawsuits, how likely are these companies to win or lose stock and the estimated value to be paid or earned at the end of such lawsuits.


With this legal information, combined with the financial information already raised by your audit, it is possible to have a complete picture of the company's real situation, which will help in making a safer decision.


This procedure is suitable for Brazilian entrepreneurs who want to do new business, as well as for foreigners who wish to do business in Brazil, and is an essential procedure for companies that intend to do business in Brazil.


SIAL's team is at your disposal to assist your company to reduce risk when negotiating with Brazilian parties by using the legal due diligence tool. To learn more about this service please click here click here.

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