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Benefits of Making Business in Belgium | 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 Belgium | Buy & Sell Business

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  1. BENEFITS OF MAKING BUSINESS IN BELGIUM 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 BELGIUM WWW.MERGERSCORP.COM

  4. Country Overview Belgium, a country in Western Europe, is known for medieval towns, Renaissance architecture and as headquarters of the European Union and NATO. The country has distinctive regions including Dutch-speaking Flanders to the north, French-speaking Wallonia to the south and a German-speaking community to the east. The bilingual capital, Brussels, has ornate guildhalls at Grand-Place and elegant art-nouveau buildings. Belgium's modern, private-enterprise economy has capitalized on its central geographic location, highly developed transport network, and diversified industrial and commercial base. The most important sectors of Belgium’s economy in 2015 were public administration, defence, education, human health and social work activities (22.5 %), wholesale and retail trade, transport, accommodation and food services (19.7 %) and industry (16.3 %).

  5. Executive Summary In 2018, according to the International Monetary Fund, Belgium had the 18th highest GDP per capita in the world. It is ranked as 17th on the UN's Human Development Index (a comparative measure of life expectancy, literacy, education, standards of living, and quality of life). Belgium is heavily dependent on world trade, with over two-thirds of GNP being derived from exports. The country's exporting potential is aided by its excellent transport infrastructure, central geographical location, and multilingual work force. Over half of Belgium's exports are sent to neighbouring European countries. Belgium and Luxembourg have been in a single trade market since 1922, with shared customs and a currency union.

  6. Introduction – Doing business in Belgium Belgium is ranked 46 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Belgium deteriorated to 46 in 2019 from 45 in 2018. Belgium has an open economy and a fairly formalized business culture similar to its European neighbors. According to EU statistics, there are over 620,000 active businesses in Belgium. The majority of these are small or medium-sized enterprises (SME) which generate around 62.4% of value to the Belgian economy. There are many Belgian businesses owned by foreigners, with foreign-owned firms accounting for around 28% of value in the private sector. Companies are typically flat in organizational structure, with fewer levels of middle management. However, rank and title are important and decisions are generally made by top-level staff.

  7. Conducting business in Belgium The main forms of companies in Belgium are: • limited liability company, • unlimited liability company, and • sole proprietorship. General and limited partnerships are less common. The minimum capital requirements to start varies according to the type of company. In order to register a business in Belgium, you must submit the Articles of Incorporation (in French, Dutch or German) at one of the FPS Finance's registration offices. Businesses must register an extract from their Articles of Incorporation with the commercial court in the legal district in which their registered office is located. They must do so within 15 days following the founding of the company.

  8. Taxation in Belgium Taxation in Belgium is one of the highest in Europe. Belgian tax rates amount to an effective rate of more than 50% for the highest earners (including social security), compared to an average 45% in Europe. For residents, their filings are due within one month after receipt of the tax form from the tax authorities and, in principle, at the latest on 30 June of the year following the income year. Resident taxpayers must obtain the necessary forms from the Ministry of Finance if they have not received them by 1 June. Belgian companies are taxed at the standard rate of 33.99%, which can be reduced up to 24.98% under certain circumstances. For the self-employed, there is a standard, progressive personal tax rate of 25- 50%.

  9. Trade Belgium had a total export of 468,643,264.45 in thousands of US$ and total imports of 454,713,800.86 in thousands of US$ leading to a positive trade balance of 13,929,463.60 in thousands of US$. The trade growth is 4.73% compared to a world growth of 3.50%. GDP of Belgium is 542,761,092,100 in current US$. Belgium services export is 123,516,171,300 in Bop, current US$ and services import is 123,543,691,510 in Bop, current US$. Belgium exports of goods and services as percentage of GDP is 82.58% and imports of goods and services as percentage of GDP is 82.74%.

  10. Banking in Belgium The four main Belgian banks are ING, Dexia Bank, BNP Paribas-Fortis and KBC. A full range of financial services is offered, with special account facilities for non-Belgian nationals. Banking services are also available from the Post Office. The country's central bank is the National Bank of Belgium, 50% of which is owned by the state and the other 50% traded as shared on Euronext Brussels. Banking in Belgium is regulated by the Financial Services and Markets Authority.

  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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