EY put out a piece in March 2021 entitled “M&A in Brazil: Pre- and post-transaction risks during a pandemic”.  The piece states, among other things:

“Common due diligence procedures include understanding a company’s generation of positive cash flows, controversial tax positions that may lead to disputes with taxing authorities and ongoing legal proceedings.  Investors may want to look for additional red flags.  This can include focusing on the higher-risk areas of the business where bribes or kickbacks could be disguised as normal transactions.  When considering a Brazilian target, it may be helpful to perform pre-acquisition background research on top management, major third-party vendors and partners.”

Read the full piece here.