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Businesses Charge towards Brazil Despite Inflation Fears

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NEW YORK--(EON: Enhanced Online News)--Almost 85 percent of U.S. business executives expect the level of inflation in Brazil to increase in the coming year, according to a new survey of more than 500 global financial consultants. img border='0' title='Add to Google' alt='Add to

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									Businesses Charge towards Brazil Despite Inflation
Fears
Global Financial Consultants Forecast an Increase in Transaction Activity in Brazil in the Coming Year

June 28, 2011 04:03 AM Eastern Daylight Time 

NEW YORK--(EON: Enhanced Online News)--Almost 85 percent of U.S. business executives expect the level of
inflation in Brazil to increase in the coming year, according to a new survey of more than 500 global financial
consultants conducted online by Merrill DataSite®, the leading provider of virtual data room (VDR) solutions for
business communication and information management. Nonetheless, nearly 75 percent add that they expect their
company to boost its level of activity in Brazil over the next 12 months. Currently, the inflation rate in Brazil is 6.5
percent*, up from 5.91 percent in 2010.

“While companies across the globe are eager to conduct business in Brazil, it is clear that they will have to overcome
the hurdle of rising inflation rates in this emerging market,” commented Richard A. Martin Jr., Senior Director of
Marketing for Merrill DataSite. “Despite genuine fears about inflation and the country’s ability to accurately evaluate
opportunity, businesses are still setting their sights on Brazil and its assets.” 

The survey also revealed that almost half of respondents think that the greatest risk in doing business in Brazil is their
inability to conduct proper due diligence there. Another 15 percent of the respondents say currency fluctuations are a
bigger concern.

“Tax and regulatory constraints are the biggest hurdles facing investors doing deals in Brazil,” according to the
webinar participant Daniel Calhman De Miranda, Partner at Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga
Advogados. “These issues can be mitigated by having a management team on the ground in Brazil that understands
the local business environment.” 

Over half (53.3 percent) of the same respondents believe that over the next 12 months activity in Brazil will be
slightly, or greatly weighted towards greater importing, with almost one third (32.5 and 32.8 percent, respectively) of
respondents expecting the highest levels of growth in Brazil to be in construction and infrastructure or in the natural
resources, energy and agriculture industries.

“There has been a significant increase in the amount of inbound foreign investment in Brazil,” commented another
webinar participant Maurice Blanco, Partner Davis Polk & Wardwell LLP. “Natural resources are dominating the
deal-making market in Brazil, with the oil and gas sector proving especially strong.” 

“Brazil has successfully endured the financial crisis; the economic strength of this country is no longer a question” 
commented the third webinar speaker Jankiel Santos, Chief Economist, BES Investimento do Brasil. “The country’s
high level of both imports and exports will curb inflation in the coming months as well as create a competitive
marketplace in which Brazil will have a lasting presence.” 

Responses were drawn from survey questions posed during a worldwide webinar on May 19th, 2011 called,
“Brazil: A Case Study of Exponential Economic Growth Domestically and Internationally.” You may access the
recorded session at http://online.kcsa.com/mdatasite/webinar_arch.php?id=2.

*Source: Bloomberg News

About Merrill DataSite
Merrill DataSite® is a secure virtual data room (VDR) solution that optimizes the due diligence process by providing
a highly efficient and secure method for sharing key business information between multiple parties. Merrill DataSite 
provides unlimited access for users worldwide, as well as real-time activity reports, site-wide search at the document
level, enhanced communications through the Q&A feature and superior project management service – all of which
help reduce transaction time and expense. Merrill DataSite's multilingual support staff is available from anywhere in
the world, 24/7, and can have your VDR up and running with thousands of pages loaded within 24 hours or less.

With its deep roots in transaction and compliance services, Merrill Corporation (www.merrillcorp.com) has a
cultural, organization-wide discipline in the management and processing of confidential content. Merrill DataSite is
the first VDR provider to understand customer and industry needs by earning an ISO/IEC 27001:2005 certificate of
registration – the highest standard for information security – and is currently the world's only VDR certified for
operations in the United States, Europe and Asia. Merrill DataSite's ISO certification is available for review at:
www.datasite.com/security.htm.

As the leading provider of VDR solutions, Merrill DataSite has empowered nearly 2 million unique visitors to
perform electronic due diligence on thousands of transaction totaling trillions of dollars in asset value. Merrill DataSite
VDR solution has become an essential tool in an efficient and legally defensible process for completing multiple types
of financial transactions.

About Merrill Corporation
Founded in 1968 and headquartered in St. Paul, Minn., Merrill Corporation (www.merrillcorp.com) is a leading
provider of outsourced solutions for complex business communication and information management. Merrill's
services include document and data management, litigation support, language translation services, branded
communications programs, fulfillment, imaging and printing. Merrill's target markets include the legal, financial
services, insurance, healthcare and real estate industries. With more than 5,000 people in over 40 domestic and 22 
international locations, Merrill empowers the communications of the world's leading companies.

Contacts
KCSA Strategic Communications
Danielle Modzelewski, 212-896-1208
dmodzelewski@kcsa.com

								
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