Benefits of Making Business in Ghana | Buy & Sell Business

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

4. Country Overview Ghana, country of western Africa, situated on the coast of the Gulf of Guinea. Although relatively small in area and population, Ghana is one of the leading countries of Africa, partly because of its considerable natural wealth and partly because it was the first black African country south of the Sahara to achieve independence from colonial rule. In addition to being known for its lush forests, diverse animal life, and miles of sandy beaches along a picturesque coast, Ghana is also celebrated for its rich history—its habitation possibly dating from 10,000 BCE. The country takes it name from the great medieval trading empire that was located northwest of the modern-day state until its demise in the 13th century.

5. Executive Summary Well-endowed with natural resources, Ghana has roughly twice the per capita output of other countries in the West Africa sub- region. In terms of its political terrain, Ghana has a stable multiparty constitutional democracy founded on elections. The country has witnessed three smooth transitions of change of governments in the current democratic dispensation. The main arms of government are the Executive, Legislature, and Judiciary, each of which is independent of the other. At the local level, the District Assemblies are to be the highest political and administrative authority in each district, with deliberative, executive, and legislative powers.

6. Introduction – Doing business in Ghana Ease of Doing Business in Ghana averaged 92.83 from 2008 until 2019, reaching an all time high of 120 in 2017 and a record low of 60 in 2010. Ghana's wealth of resources, democratic political system and dynamic economy, makes it undoubtedly one of Africa's leading lights. Gaining the world's confidence with a peaceful political transition and a grounded and firm commitment to democracy has helped in expediting Ghana's growth in foreign direct investment (FDI) in recent years. Ghana has attracted the attention of well-known international businesses, investing in all sectors of its economy.

7. Conducting business in Ghana The most common business organizations in Ghana. •Company limited shares •Company limited by guaranteed •Company unlimited shares •Sole proprietorship •External company •Incorporated partnership All business entities except Sole Proprietorship are required to register with the Registrar General’s Department (RGD). This institution is mandated by the government to ensure an efficient and effective administration of entities including the registration of business, industrial property administration of estates..

8. Taxation in Ghana In Ghana, income tax is levied each year on the income of both resident and non- resident persons. Resident persons are taxed on their worldwide income, while non-resident persons are taxed on income which has a source in Ghana. Generally, income has a source in Ghana if it accrues in or is derived from Ghana. The chargeable income of non-resident individuals is generally taxed at a flat rate of 25%. Income tax rates applicable to companies differ according to industry, location and type of business. The general rates applicable to entities which do not qualify for incentives is 25%..

9. Trade Ghana is the 70th largest export economy in the world and the 111th most complex economy according to the Economic Complexity Index (ECI). In 2017, Ghana exported $17.1B and imported $13.2B, resulting in a positive trade balance of $3.9B. In 2017 the GDP of Ghana was $59B and its GDP per capita was $4.49k. The top exports of Ghana are Gold ($8.35B), Crude Petroleum ($2.97B), Cocoa Beans ($1.77B), Cocoa Paste ($538M) and Coconuts, Brazil Nuts, and Cashews ($325M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Cars ($793M), Delivery Trucks ($442M), Refined Petroleum ($415M), Rice ($369M) and Non-fillet Frozen Fish($278M).

10. Banking in Ghana Ghana's formal banking sector comprises the central bank (the Bank of Ghana) and a number of other banks, including commercial banks, development banks, merchant banks and a plethora of rural unit banks. As the Central Bank, the Bank of Ghana has the responsibility for implementation of monetary policies. Founded in 1957, the Ghanaian central bank regulates financial institutions and banks in Ghana, Headquartered in Accra, GCB Bank Limited adopted its current name in 2013, after being formerly known as Ghana ... .

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