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Brazil’s GDP grew 5.4% in 2007 to US$1.1 trillion. Foreign direct investment in Brazil practically doubled from 2006 to 2007, from US$18.7 billion to over US$34 billion. While growth is projected to slow to 4.8% in 2008, investment opportunities abound in Latin America’s largest economy. Brazil is slated to have more IPO’s than any other Latin American country in 2008. Despite the general optimism, pitfalls are real and can be extremely detrimental to the foreign investor. Undisclosed liabilities, hidden ownership, and questionable practices and reputations of local management are some of the issues that a company could face when doing business in Brazil. In almost 30% of all partnerships, acquisitions or joint-ventures, a potential problem lies just under the surface.