Wednesday, November 16, 2011

Day 5 - Thoughts from Seth

We have been very fortunate (in my opinion) to have visited with diverse companies here in Brazil.  We've been able to see both non-profit organizations and for-profit companies who contribute both to society & to their shareholders in unique ways.  In all of our visits thus far, the common theme has definitely been the "cultural" differences between doing business in Brazil vs. what we see and experience in the US.  We have heard over and over again how important it is to build relationships and trust first before considering closing a deal.  The notion of instant gratification that many businesses are accustomed to in the US would simply not work here.  We are used to meeting a couple times and perhaps going to dinner and then signing on the dotted line.  Here, they often take 6 months to get to know one another before considering entering into a business relationship.

We heard today from an investment banker (who is originally from Indiana and taught for 2 years at PU) that he was recently part of a transaction where they valued a company at ~$90 Million Reais and because of a relationship the owners had with one particular bidder, they settled for a bid of ~$65 Million Reais.  While we may view this as ludicrous in the US, the owners didn't think twice about it or even consider that they may be taken advantage of by someone they knew.  He commented that the owners didn't feel like they needed any more money and were happy to be able to sell to someone that they had a connection with.  It truly is a different way of doing business and viewing life in general in many respects.

1 comment:

  1. Academic travel courses can serve a variety of purposes. They can provide us with a new way to view the world and our involvement in it, allows us to learn from others who may do things differently, perhaps see business opportunities along they way, and often make us more grateful for what we return to in our own country.

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