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Benefits of Making Business in Liberia | Buy & Sell Business

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Benefits of Making Business in Liberia | Buy & Sell Business

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

  4. Country Overview Destination Liberia, the "Land of the Free" a tropical country in West Africa with a spectacular coastline at the North Atlantic Ocean. The country was known for some time as the Pepper Coast and later as the Grain Coast. It is surrounded by Sierra Leone, Guinea and Côte d’Ivoire. Liberia covers an area of 111,369 km² (43,000 sq mi), making it somewhat larger than Bulgaria or slightly larger than the U.S. state of Tennessee. Spoken languages are English (official) and an English-based pidgin (Liberian English), plus several indigenous languages. The country has a population of about 4.5 million people (in 2015). Capital and largest city is Monrovia, (named after, no not Marilyn Monroe, but James Monroe, the fifth President of the United States (1817–1825)).

  5. Executive Summary The climate of Liberia is tropical, hot and humid. The capital is Monrovia, which together with the newer port of Buchanan are amongst the most modern ports on the west coast of Africa. There are direct scheduled flights from both Europe and the US to Roberts International Airport on the outskirts of Monrovia. The foundation and initial colonization of Liberia in the 1820s resulted from a number of initiatives in which enslaved African Americans returned to Africa in an eventually successful attempt to create a republic on libertarian lines. By 1840 a number of Liberian colonies had united in a Commonwealth. The Liberian settlers were relatively few in number, and invited participation in their economy from indigenous African tribes. Eventually these migrants outnumbered the colonists; by now, descendants of the original settlers make up no more than 5% of the total population of nearly 3.9m (July 2011 est). .

  6. Introduction – Doing business in Liberia Liberia is ranked 175 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. Ease of Doing Business in Liberia averaged 163 from 2008 until 2019, reaching an all time high of 180 in 2014 and a record low of 144 in 2013. Liberia’s economy is market-based and largely dependent on natural resources, foreign aid and foreign direct investment. Foreign companies can operate in Liberia through local agents, a local corporation or a branch. Liberia has a very liberal business climate. There are no statutory foreign exchange controls in Liberia, and funds may generally be freely remitted into and out of the country. .

  7. Conducting business in Liberia five bureaucratic procedures that take a total of 20 days at a total cost of only $86, with no minimum capital required by the government for the start-up. Needless to say, these are very benign conditions for outsiders seeking to start a business in Liberia, but given that per capita income is $160 a year, it is still nonetheless steep for native Liberians Liberia, unfortunately, is also terrible at protecting investors and minority shareholders. While it is somewhat easy to bring minority lawsuits, there are few and relatively weak laws pertaining to board disclosures and next-to-no liability laws constraining board and director actions. When investing in a Liberian company, the rule of the game is buyer beware. . Liberia is a relatively easy place to start a commercial enterprise. To start a business in Liberia, one has to complete

  8. Taxation in Liberia The primary concerns for a foreign company that needs to comply with tax laws in Liberia are: Individual income tax (IIT) for employees in Liberia, social security costs, GST, withholding tax, business tax and permanent establishment concerns. Goods and Service Tax (GST) : GCT at 10% for goods and 7% for services Company Tax : Corporate tax: 25% Mining and petroleum companies: 30% Withholding Taxes : Dividends: 15%, Interests: 15%, Royalties: 15%. Social Security Contributions Paid By Employers : 4.75% (3% social insurance + 1.75% workmen compensation).

  9. Trade Liberia is the 145th largest export economy in the world and the 97th most complex economy according to the Economic Complexity Index (ECI). In 2017, Liberia exported $1.02B and imported $3.47B, resulting in a negative trade balance of $2.45B. In 2017 the GDP of Liberia was $3.29B and its GDP per capita was $1.28k. The top exports of Liberia are Passenger and Cargo Ships ($450M), Gold ($189M), Rubber ($122M), Iron Ore ($64.1M) and Crude Petroleum ($42.7M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Passenger and Cargo Ships ($1.69B), Refined Petroleum ($596M), Rice ($130M), Boat Propellers ($80.8M) and Iron Structures ($72.8M).

  10. Banking in Liberia The Central Bank of Liberia (CBL) is responsible for licensing, regulating, and overseeing the financial sector in Liberia. In 2017, the banking sector recorded growth in key balance sheet indicators including liquidity, capital position, and net shareholders’ worth. Total banks’ assets rose by 30.1 percent, total capital by 38.4 percent, total deposits by 19.4 percent, and total loans by 36.1 percent. However, the CBL attributed the banking sector’s growth mainly to the depreciation of the value of the Liberian dollar against the U.S. dollar. Liquidity for the sector remained high during the year with a liquidity ratio of 41.8 percent, far above the CBL’s mandatory 15 percent minimum requirement. Most banking institutions operate as repositories for funds and provide short-term trade financing and operating capital to businesses that have good credit records.

  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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