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

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

  4. Country Overview Niger, officially Republic of Niger, French République du Niger, landlocked western African country. It is bounded on the northwest by Algeria, on the northeast by Libya, on the east by Chad, on the south by Nigeria and Benin, and on the west by Burkina Faso and Mali. The capital is Niamey. The country takes its name from the Niger River, which flows through the southwestern part of its territory. The Official language of Niger is French. Roughly 85 percent of the population adheres to the Sunni branch of Islam. The economic system is based upon planning but accords an important role to private enterprise. The three main policy objectives are the maintenance of national unity, the elevation of the living standards of the population, and the attainment of economic independence.

  5. Executive Summary Niger is a member of the G5 Sahel, which also includes Burkina Faso, Mali, Mauritania, and Chad. Niger is a vast, Sub-Saharan country, located in the heart of the Sahel region, with an estimated population of 22.4 million (2018). The Nigerien economy is not well diversified and depends primarily on agriculture, which represents 40% of its gross domestic product (GDP). Economic growth increased from 4.9% to 6.5% between 2017 and 2018, surpassing the estimated potential growth rate of 4.8%. This increase is due primarily to the sound performance of the agricultural sector and sustained activity in the construction and services sectors.

  6. Introduction – Doing business in Niger Niger is ranked 132 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Niger improved to 132 in 2019 from 143 in 2018. Niger’s economy has been traditionally largely based on subsistence crops and livestock. Niger is at the same time a land of opportunities with various assets: Niger has vast land areas suitable for the development of more intensive agro- and pastoral-business. Niger’s basement is rich in mineral resources as uranium, oil and gas, gold, iron, phosphates, coal, limestone, gypsum, cassiterite, etc.

  7. Conducting business in Niger There are several ways of doing business in Niger : •Limited Liability Company The Niger LLC must appoint at least 1 director and 1 shareholder who can be any nationality. The minimum paid-up share capital required to complete the incorporation process is US$2000 •Public Limited Company The Niger PLC must appoint at least 3 director and 1 shareholder who can be any nationality. The minimum paid-up share capital required to complete the incorporation process is US$20,000 •Branch The Niger branch office can be 100% owned. The scope of operations for this entity will be defined by the parent company. Also, the branch office must have a registered office in Niger as well a resident agent appointed by the company to receive summons, notices, etc. on behalf of the company.

  8. Taxation in Niger Tax on Corporate Income : Niger has value-added tax (VAT) with a standard rate set at 17% in 2003. Other significant sources of revenue from taxes are social security contributions, the registration tax, and excises on petroleum products, alcohol, and cigarettes. The corporate tax rate is 45%. Tax on Dividend : Natural person, corporate and economic unit, resident or not in the country, will be subject to a withholding tax of 10%, which is applicable for tax residents and 15% for non-tax residents. Tax on Capital Gain : As general rule, capital gains are subject to a 10% definitive withholding tax rate. Also, in case of 23 PwC A Guide for Nicaragua the capital gain arising from the sale of property, which is subject to annotation before the public registry office, the withholding tax will be calculated as follows:

  9. Trade Niger is the 158th largest export economy in the world. In 2017, Niger exported $602M and imported $931M, resulting in a negative trade balance of $328M. In 2017 the GDP of Niger was $8.12B and its GDP per capita was $1.02k. The top exports of Niger are Radioactive Chemicals ($329M), Refined Petroleum ($96.2M), Other Oily Seeds ($93.3M), Gold($28.8M) and Petroleum Gas($20.2M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Packaged Medicaments ($71.5M), Rice ($53.9M), Palm Oil ($42.3M), Pesticides ($35.1M) and Cement($34.2M).

  10. Banking in Niger The Central Bank of West African States (BCEAO), a central bank common to the eight members of WAEMU, governs Niger's banking system. The eight member countries use the CFA franc issued by the BCEAO and pegged to the euro at a rate of one euro to 656 CFA francs. The Central Bank of Nigeria (CBN) is the Central bank and apex monetary authority of Nigeria established by the CBN Act of 1958 and commenced operations on July1,1959.

  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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