To set up a joint venture together with us might be the perfect solution for you.

We have several times met companies that have a product that is very suitable for Brazil, that want to enter the Brazilian market, but that are not prepared to take on the risk of entering. This might be companies that have tried to enter another emerging market earlier and failed, and therefore conclude that they can under no circumstances afford another failure. It might also be companies that feel that they cannot properly asses the risk of entering Brazil. However, one of the most common reasons for not entering Brazil, is that the necessary management resources are not available.

In some cases, we can act as your partner in Brazil. We are in an excellent situation to estimate the viability of your business case, and the risk you face when entering Brazil. We can either go in as the partner in a joint venture with you, where we share the investment as well as the risk. We can also in some cases offer to set up your business for you, and then take the full risk ourselves.

Four key parameters related to identifying the right joint-venture solution:

  • Your risk exposure: You might want to share the risk 50-50, or you might want to avoid all risk by not taking any stake in the venture at all. The latter migh be the case if you feel that you do not have the capability to correctly estimate the risk, but it might also be the case if you regard Brazil as a periferal market where you do not want to devote any management resources. Even if you opt for a solution where you have no stake at all, you might at a later stage buy the Brazilian operations, if these turn out to be very successful.
  • Your investment: You might not have the necessary funds available to invest in a Brazilian venture, and you might not want to take on more debt to finance this. Entering Brazil might in such a case be a very attractive option, if you can limit your investment through a joint-venture. Even if you have no stake in the Brazilian arm of your business, this will generate revenues, which will generate operational earnings to your core business.
  • Your control: The control and influence you have over your Brazilian operations might be of greatest importance, and you might therefore not want to enter into a joint venture, where you end up as a minority owner. There are, neverhteless, other ways for control and influence than ownership stakes, and these should be explored.
  • Your available human resources: You might not have the management resources needed to set up operations in Brazil yourselves. In such a case, we can take on the responsibility to manage the venture or identify the right management team and lead this.