Brazil:
Family Business Deals Must Cater To Egos
31 December 2014
Veirano e Advogados Associados
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Mergers and acquisitions involving family-owned companies remain
common across Latin America, and still throw up unique problems
before, during and after negotiations, particularly when family
members clash, said lawyers speaking at Latin Lawyer's 5th
Annual M&A Conference.
Lawyers working on deals involving family businesses face
challenges on both sides of the negotiating table, advising both
the buyer and the seller. When working with family-owned sellers,
they have to tread particularly carefully to avoid pitfalls later
on.
Pre-sale, it's important businesses re-organise themselves
so they aren't undersold. To add value and increase buyer
appetite, costly assets that are not related to the business itself
should be removed and an independent management team introduced,
which would make the company less dependent on the founding family
in the event that the buyers are unwilling to keep family members
on after the acquisition, argued Veirano
Advogados' Alberto Bragança.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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