Dispelling the Mexican Entrepreneur’s Myths of Doing Business in America

… Notes from a Texas Litigator

presented by:

Edgar Saldivar

BoyarMiller 832.615.4276

esaldivar@boyarmiller.com

MABA-TX Summer CLE Conference August 2, 2013

Why is this relevant today? GROWING TEXAS ECONOMY:

Overall, US-Mexico trade over $1B daily! Port of Houston: largest foreign tonnage port Oil & Gas: Booms throughout Texas Crime in Mexico: Motivating Mexico’s wealthy and business owners to branch out or set roots in different pockets of TX

Increased Opportunity on Many Levels Mexican Entrepreneurs Looking to Invest Money Here

Creation of New Businesses in a Robust Economy Setting up U.S. affiliates to expand operations in Texas Seeking investment vehicles to take advantage of immigration visas for

residency and/or citizenship

Real Opportunities for Lawyers Serving this Market Immigration law opportunities, Small to Middle Market Transactional

Lawyers, Business Litigators to Counsel Clients on Risks and Liability Concerns

Clients will come to lawyers with certain conceptions about the U.S. Legal System, presenting lawyers an opportunity to manage their expectations

Lawyers can become a trusted guide in a perceived litigation minefield

“I don’t need legal counsel for every aspect of my business.”

Reality No. 1: Legal counsel necessary for every step of business:

formation/corporate transactions, finance and capital formation, real estate, employment matters, and business disputes.

Reality No. 2: Do business at your own risk; best friends will be: your

banker, accountant, and lawyer

Myth (or misconception) No. 1

Myth (or misconception) No. 2

“Lawyers and the legal system can’t be that much different from those in Mexico”

Reality No. 1: American legal system is much different than the Mexican legal

system. And no you can’t ask a judge to throw a breaching party in jail. Reality No. 2: U.S. Lawyers are very specialized and often you need different

lawyers for different questions.

Myth (or misconception) No. 3 “In a business friendly environment like Texas,

disputes should be resolved rather fast and easily”

Reality No. 1: Litigation process is more complicated than it appears as there are many steps in the process. For example, a demand letter is not that simple; and often, that’s just the beginning.

Reality No. 2: Litigation is much more intrusive than in Mexico and often requires disclosures and discovery to which businesses are not accustomed in Mexico

Reality No. 3: Cost of litigation is rising exponentially due to various factors: e-

Discovery, Litigation Holds/ Spoliation concerns, rising costs of arbitration

Texas: Still a Land of Opportunity for Mexican Entrepreneurs who can manage risks with proper and strategic legal counsel

Questions?

Edgar Saldivar

BoyarMiller

832.615.4276 esaldivar@boyarmiller.com

http://www.linkedin.com/in/saldivar https://twitter.com/s4ldivar