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Benefits of Making Business in New Caledonia | Buy & Sell Business

<br>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 New Caledonia | Buy & Sell Business

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  1. BENEFITS OF MAKING BUSINESS IN NEW CALEDONIA 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 NEW CALEDONIA WWW.MERGERSCORP.COM

  4. Country Overview New Caledonia, French Nouvelle-Calédonie, largest island of the French overseas country of New Caledonia, in the southwestern Pacific Ocean 750 miles (1,200 km) east of Australia. Also known as Grande Terre (Mainland), it is approximately 250 miles (400 km) long and 25 miles (40 km) wide. From its coast, encircled by one of the world’s longest barrier reefs (second only to Australia’s Great Barrier Reef), the island rises to a double chain of central mountains, the highest peak of which is Mount Panié, with an elevation of 5,341 feet (1,628 metres). The capital, as well as the chief town and port, is Nouméa, on the southwest coast. The island has significant ore deposits (nickel, iron, chrome, cobalt, manganese) and exports coffee and copra.

  5. Executive Summary New Caledonia has 11% of the world's nickel reserves, representing the second largest reserves on the planet. Only a small amount of the land is suitable for cultivation, and food accounts for about 20% of imports. In addition to nickel, substantial financial support from France - equal to more than 15% of GDP - and tourism are keys to the health of the economy. New Caledonians are French citizens with the right to live anywhere in France. They are entitled to vote in territorial and French national elections. New Caledonia is a member of the Pacific Community (SPC), the South Pacific Regional Environment Program (SPREP) and the South Pacific Tourism Organisation (SPTO). New Caledonia is also an associate member of the International Organisation of La Francophonie and has a non-voting seat on the World Health Organization Western Pacific Regional Committee.

  6. Introduction – Doing business in New Caledonia New Caledonia is a prosperous economy with advanced infrastructure. The country has the second highest per capita Gross Domestic Product (GDP) in the region and contains around 25% of the world’s nickel resources. The mainstays of the country’s economy are mining, tourism and to a lesser degree, agriculture and fishing. The agricultural sector produces cereals, fruit and vegetables as well as copra and coffee for export. The fishing industry trawls primarily for shrimp and tuna, the bulk of which is sold to Japan.

  7. Conducting business in New Caledonia A small light-industrial sector has grown up in the last two decades producing building materials, furniture and processing foods, largely for domestic consumption. In the mining sector, New Caledonia is the world’s largest producer of nickel after Canada and the USA, and has about one-quarter of the world’s known deposits; this generates 90% of the country’s export revenue. There are also deposits of cobalt, iron, manganese, lead and zinc.

  8. Taxation in New Caledonia All corporations, whether public or private, pay tax at the rate of 30% on New Caledonia-source income only. Nickel-related industries are taxable at the rate of 35%. Nonresident individuals are subject to New Caledonian income tax on their local-source income. A 25% notional tax rate is applied to these revenues. There is no sales tax or value-added tax (VAT) in New Caledonia Domestic taxation is relatively low, with a general tax on services of five per cent.

  9. Trade New Caledonia is the 137th largest export economy in the world. In 2017, New Caledonia exported $1.48B and imported $2.04B, resulting in a negative trade balance of $558M. The top exports of New Caledonia are Ferroalloys ($654M), Nickel Mattes ($358M), Nickel Ore($330M), Cobalt ($61.5M) and Sulfates ($14.5M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Refined Petroleum ($321M), Coal Briquettes ($93.7M), Cars($84.5M), Packaged Medicaments ($74.8M) and Other Edible Preparations ($45M)

  10. Banking in New Caledonia The Caledonian Investment Bank (BCI), a public limited company of mixed economy, was born in 1988 from the spin-off of a company grouping a double activity: construction and real estate management on the one hand, the granting of investment loans to businesses and housing loans to individuals on the other hand. BCI then became a universal retail bank that provides comprehensive financial services to its clientele of individuals, SMEs and large companies throughout New Caledonian territory. Today, BCI is the 1st bank in New Caledonia with more than 34.9% market share on outstanding loans as of December 31, 2018. Its capital is held by two main shareholders, New Caledonia on the one hand, BRED Banque Populaire on the other hand (acquired in 2006); different shareholders, which give it both its uniqueness as a financial institution for development and its full and complete characteristics of a commercial bank operating in a competitive environment.

  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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