Benefits of Making Business in Guadeloupe | Buy & Sell Business

1. BENEFITS OF MAKING BUSINESS IN THE GUADELOUPE 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 THE GUADELOUPE WWW.MERGERSCORP.COM

4. Country Overview Guadeloupe, a French overseas region, is an island group in the southern Caribbean Sea. Resembling a butterfly, its 2 largest islands are separated by the Salée River. Hilly Grande-Terre Island has long beaches and sugarcane fields. On Basse-Terre Island, Parc National de la Guadeloupe encompasses Carbet Falls and the volcano La Grande Soufrière. Smaller islands include Marie-Galante and La Désirade.. The country's two main islands look like the wings of a butterfly and are joined together by just a couple of bridges and a mangrove swamp. Grande-Terre, the eastern of the two islands, has a string of beach towns that offer visitors world-class stretches of sand to laze on and plenty of activities.

5. Executive Summary Tourism is the major industry, and the majority of people are employed in the service sector. Agriculture and sugar and rum production are also important. There also is subsistence farming, livestock raising, and fishing. Additionally, France provides many subsidies and necessities to Guadeloupe. The population is mainly of African or mixed descent and largely Roman Catholic. French and a Creole patois are spoken. The head of government is a commissioner appointed by France. The legislature consists of a 36-member, popularly elected general council and a regional council.

6. Introduction – Doing business in The Guadeloupe Businesses are at the basis of economic development in Guadeloupe, but they also contribute to the population’s enrichment and fulfillment. Therefore, regardless of their size, activity sector or location, they contribute strongly to our entire archipelago’s vitality. Because they create jobs and drive development, businesses represent key cogs of our society. Willing to support them, the Guadeloupe Regional Council implements a solid support policy via a powerful set of mechanisms.

7. Conducting business in The Guadeloupe Guadeloupe exhibits a strong agricultural tradition. The agricultural sector employs 12% of the working population and contributes 6% of regional gross domestic product. Representing a third of the archipelago’s surface area, the archi pelago’s agricultural land is mostly devoted to two crops: sugar cane and banana. Yet, both experience a similar tendency: decr easing surface areas, productions and farms. When establishing a company in Guadeloupe, an interested investor must do due diligence with regard to legal processes, international regulations, and sufficient investment for success

8. Taxation in The Guadeloupe French residents are taxed on a household basis, at progressive rates. The mode of calculation is somewhat strange, and emphasizes the familial nature of French society. The household's net taxable income is divided by the number of family members, calculated according to the so-called 'family coefficient rules' (example, a two parent family with two dependent children would result in the gross family income being divided by 3. The figure arrived at is taxed at the scale rates. Then the resulting amount is re-multiplied by whatever number was arrived at.

9. Trade Guadeloupe has a chronically large annual deficit in the balance of external trade, with the value of imports vastly outstripping that of exports. The bulk of trade is with France; Martinique, Germany, French Guiana, and the United States are lesser trading partners. Most imports consist of food and agricultural products, machinery and equipment, and vehicles and parts. Most of the banana crop and raw sugar are exported to France. Other fruits and vegetables, rum, and flowers are also exported. The top five exported HS 6 digit level products to world by Guadeloupe along with trade value are: Guadeloupe exported Bananas, including plantains, fresh or dried , worth US$ 41,051.19 million. Guadeloupe exported Sailboats, with or without auxiliary motor , worth US$ 21,868.42 million.

10. Banking in The Guadeloupe The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone, which comprises 19 member states of the European Union and is one of the largest monetary areas in the world. Established by the Treaty of Amsterdam, the ECB is one of the world's most important central banks and serves as one of seven institutions of the European Union, being enshrined in the Treaty on European Union (TEU). The primary objective of the ECB is to maintain price stability within the Eurozone. Its basic tasks, set out in Article 3 of the Statute are to set and implement the monetary policy for the Eurozone, to conduct foreign exchange operations, to take care of the foreign reserves of the European System of Central Banks.

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

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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