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Benefits of Making Business in N. Mariana Islands | Buy & Sell Business

At MergersCorp we help our clients confidentially buy and sell privately held businesses, aligning the interests of all parties for mutual success and satisfaction.<br><br>Find more at: http://mergerscorp.com

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Benefits of Making Business in N. Mariana Islands | Buy & Sell Business

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  1. BENEFITS OF MAKING BUSINESS IN NORTH MARIANA ISLANDS WWW.MERGERSCORP.COM

  2. At MergersCorp M&A International we help our clients confidentially buy and sell privately held businesses, aligning the interests of all parties for mutual success and satisfaction. It is our goal to make the process of either buying a new business or selling your current business as smooth and efficient as possible. We know how important confidentiality is to our sellers and we treat it with the utmost importance. WWW.MERGERSCORP.COM

  3. BENEFITS OF MAKING BUSINESS IN NORTH MARIANA ISLANDS WWW.MERGERSCORP.COM

  4. Country Overview The Common wealth of the Northern Mariana Islands, or CNMI, is a chain of 14 islands in the north-west Pacific. A self- governing commonwealth of the United States since 1976, the islands lie just 1,500 miles south of the Japanese coast. Those born on the islands are US citizens but not eligible to vote in US presidential elections. The territory receives millions of dollars in aid from Washington. Most of the population live on the island of Saipan and only four other islands are populated. Native Micronesians outnumber the indigenous Chamorro and Carolinian populations.

  5. Executive Summary The native people of the Northern Mariana Islands are Micronesians. Only about one-fourth of the total population are Chamorros, descendants of the original inhabitants, who intermingled with Spaniards, Mexicans, Filipinos, and various other Europeans and Asians. Saipan (46.5 square miles [120 square km]), Tinian (39 square miles [101 square km]), and Rota (33 square miles [85 square km]) are the principal islands and, together with Anatahan, Alamagan, and Agrihan, are inhabited. Another island, Pagan, was evacuated in 1981 after a severe volcanic eruption there. The capital is on Saipan. Tourism is the principal economic activity. Saipan and Rota are the main tourist centres and offer luxury hotels. The tourists are mainly Japanese and Americans. Subsistence farming, including the cultivation of taro, cassava, yams, breadfruit, vegetables, and bananas, is practiced extensively by many islanders to supplement their cash income. Investors from Korea, China, and the Philippines have expanded the islands’ production of clothing and accessories, making the garment industry a major component of the Northern Marianas economy.

  6. Introduction – Doing business in N. Mariana Islands With the beautiful, unspoiled environment as the key attraction, tourism has been the primary force that has developed the Northern Marianas. However, a wide range of other business opportunities exist in these islands. Some significant investment incentives and advantages for businesses include: •The protection of American judicial system and U.S. laws including those that relate to copyright, trademark, patent regulations and the protection of intellectual property; •Trading in U.S. dollar currency, with no restrictions on repatriation of profits or capital; •Significant tax advantages for executives and all employees on Northern Marianas sourced income; •Ports that are free of United States Customs duties;

  7. Conducting business in N. Mariana Islands The economy of the Commonwealth of the Northern Mariana Islands(CNMI) has been on the rebound in the last few years, mainly on the strength of its tourism industry. In 2016, the CNMI’s real GDP increased 28.6% over the previous year, following two years of relatively rapid growth in 2014 and 2015. Chinese and Korean tourists have supplanted Japanese tourists in the last few years. The various type of business entity in N. Mariana Islands are: – Sole Proprietorship – Corporation – Limited Liability Company

  8. Taxation in N. Mariana Islands The Nonresidents are taxed on their income from CNMI sources. INCOME TAX Income tax is generally levied at progressive rates. RENTAL INCOME Rental income is taxed at progressive rates. Taxable income is computed by deducting income-generating expenses (management fees, maintenance and repairs, etc.) and depreciation costs from the gross income. Residential properties are depreciated over a period of 27.5 years. CAPITAL GAINS TAX All income from the islands earned by nonresidents which are not effectively connected with a business is taxed at a flat rate of 30%.

  9. Trade The Northern Mariana Islands is the 217th largest export economy in the world. In 2017, the Northern Mariana Islands exported $3.59M and imported $140M, resulting in a negative trade balance of $136M. In 2017 the GDP of the Northern Mariana Islands was $1.59B and its GDP per capita was $28.9k. The top exports of the Northern Mariana Islands are Hydrogen($971k), Scrap Iron ($679k), Base Metal Watches ($603k), Scrap Copper ($523k) and Scrap Aluminium ($196k), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Trunks and Cases ($26.7M), Refined Petroleum ($18.6M), Cars($14.5M), Base Metal Watches($6.99M) and Sculptures ($5.61M).

  10. Banking in N. Mariana Islands NORTHERN MARIANA ISLANDS Branch Location Library is already full of BIC codes. With the help of such BIC codes, a person will be able to monitor the flow of money transfer, credit fund and direct debit transfers in the area of MP through Bank Wire Transfer without spending a lot of efforts. These branch locations are free and accessible for all the individuals in the stated country who are interested to keep their money protected and secured in all of the financial transactions of licensed banking institution. Such codes are composed of eight to eleven string characters which can help people to determine the name of the country and bank where a certain amount of money came from. With the help of these codes for money transfer and other financial transactions in a banking institution, a person will be able to determine if a certain amount of money was sent to its real receiver or not to prevent mistakes and issues in the bank wire transfer.

  11. Our M&A Process NEGOTIATION & CLOSE POST MERGER INTEGRATION (PMI) INTEGRATION (PMI) POST MERGER TARGET APPRAISAL APPROACH DUE DILIGENCE Key Areas  Target & market analysis;  Initial assessment of synergies & value drivers;  Indicative valuation;  Go or No-Go decision;  Preparation of transaction documents (NDA – Non- disclosure Agreement/LOI- Letter of Intent);  Select Transaction team;  Appoint advisors;  Consider funding ability.  Initial approach letter;  Signing of NDA;  Prepare & share initial information requests;  Formulation of LOI (Letter of Intent) & possible negotiations;  Initial meeting and Q&A;  Circulate information on the Target to the Transaction team.  Set scope of due diligence;  Set up VDR (virtual data room);  Coordinating of due diligence, further meetings and Q&A sessions;  Consider points relevant to the Post-Merger (PMI) phase;  Revisit indicative valuation & prepare detailed valuation based on due diligence findings;  SPA negotiations with the seller;  Development of final structure (share/asset deal) and final valuation;  Approvals;  Signing of SPA & Close.  Consider the extent of integration;  Development of 100 Day PMI Plan;  Consider short & long term objectives;  Estimate requirements to capture synergies;  Determine resource needs & optimal allocation. Parties Involved  CFO;  Head of M&A;  Accountants;  Corporate finance advisors;  Consultants.  Senior management;  CEO, CFO, CTO;  Strategy director;  Head of M&A;  Head of Business Development;  Consultants.  Company general counsel;  Lawyers;  Senior management.  Company general counsel;  Lawyers;  Senior management/HR. 11 © Midaxo 2018 www.midaxo.com

  12. Looking to Buy or Sell a Business? CONTACT US NOW FOR A FREE BUSINESS VALUATION WWW.MERGERSCORP.COM

  13. MergersCorp.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Member firms of the MergersCorp network of independent firms are affiliated with MergersCorp International. MergersCorp International provides no client services. No member firm has any authority to obligate or bind MergersCorp International or any other member firm vis-à-vis third parties, nor does MergersCorp International have any such authority to obligate or bind any member firm. Copyright © 2020 MergersCorp International. All rights reserved. 13 © Midaxo 2018 www.midaxo.com

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