Benefits of Making Business in Suriname | Buy & Sell Business

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

4. Country Overview Suriname, former Dutch Guiana, officially the Republic of Suriname, is a country in northern South America, bordering the North Atlantic Ocean in north, French Guiana in east, Guyana in west, and Brazil in south. The smallest sovereign country in South America covers an area of 163,820 km², compared Suriname is still about four times the size of the Netherlands, or slightly larger than the U.S. state of Georgia. Suriname is one of the most ethnically diverse countries in the Americas, it has a population of 580,000 people (2015), most of them live in the coastal regions. Capital and largest city is Paramaribo, spoken languages are Dutch (official), English (widely spoken), Sranang Tongo (a native Creole language and lingua franca), and Caribbean Hindustani. Suriname became a Dutch colony in 1667. With the abolition of African slavery in 1863, workers were brought in from India and Java. The country gained independence from The Netherlands in 1975. Many Dutch settlers did not trust an independent Suriname and fled to The Netherlands.

5. Executive Summary Suriname, once known as Dutch Guiana, is one of South America's smallest countries. It enjoys a relatively high standard of living but also faces serious political and economic challenges. Since independence from the Netherlands in 1975 Suriname has endured coups and a civil war. Suriname is one of the most ethnically diverse countries in the Americas. Most of its people are descended from African slaves and Indian and Javanese indentured labourers brought over by the Dutch to work in agriculture. Most political parties are ethnically based. Gold, oil and agriculture are key economic sectors. Bauxite mining has gone into decline. Efforts have been made to diversify the economy. Surinamese Dutch is recognized by law as the country's official language. Surinamese Dutch is also the most popular language in the country, given that up to 60% of the population identifies as native speakers of Surinamese Dutch.

6. Introduction – Doing business in Suriname Mining This is the present state of the country i.e. it is one of the main business people focus on in Suriname, whether it will also be the future of Suriname in investment is still a question. It has a signed deal with Iamgold on gold mine. Mining business is one of the backbones of Suriname’s economy which makes it quite profitable. Agriculture This is another major business idea in Suriname, its contribution to the country’s export is high. You can make rice your business focus and export it to Brazil and other regions. Suriname’s weather and temperature is favorable for agricultural activities. Under this business, you can also have a banana industry which has about 2.5% of the country’s export. Other products of agriculture that can be you can start as a business in Suriname are coconuts, palm kernel, sugar, plantains, shrimp, etc. Coffee was one of the major production under agriculture in Suriname before its decline.

7. Conducting business in Suriname Infrastructural Investment This has to do with investing in businesses that improves the citizens’ wellbeing. Some instances are: development companies, animal feed mills, computer laboratories in schools, water exportation, marketing facilities, sawmills, forestry industries and so on. These are businesses under infrastructural development that can be done in Suriname. The government recently invested in this business which makes it a very good business to do. Oil Sector Another business idea in Suriname is in the oil sector. Oil and gas is a very good business prospect in the country. Suriname is also popular for its oil production. There are several areas you can focus on, you can have an industry that produces diesel, gas and so on. The country has a state owned oil company called Staatsolie. This state owned oil company has attracted so many international oil companies and ahs negotiated and executed contracts with them. Another business under this is the refining of oil and production of ethanol.

8. Taxation in Suriname The Personal Income Tax Rate in Suriname stands at 38 percent. The Corporate Tax Rate in Suriname stands at 36 percent. Suriname Corporate Tax Rate - data, historical chart, and calendar of releases - was last updated on February of 2020 from its official source. In Suriname, the Corporate Income tax rate is a tax collected from companies. Its amount is based on the net income companies obtain while exercising their business activity, normally during one business year. The benchmark we use refers to the highest rate for Corporate Income. Revenues from the Corporate Tax Rate are an important source of income for the government of Suriname. The tax system in Suriname is progressive. The income tax rates are as follows: Employment Income: Progressive up to 38% Capital Gains: Generally None.

9. Trade Suriname is the 123rd largest export economy in the world. In 2017, Suriname exported $2.69B and imported $1.38B, resulting in a positive trade balance of $1.31B. In 2017 the GDP of Suriname was $3B and its GDP per capita was $15.2k. The top exports of Suriname are Gold ($1.81B), Precious Metal Scraps ($323M), Refined Petroleum($133M), Rough Wood ($68.2M) and Bananas ($50.8M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Refined Petroleum ($125M), Excavation Machinery ($62.9M), Delivery Trucks ($54.8M), Cars ($31.7M) and Large Construction Vehicles ($29.6M). The top export destinations of Suriname are Switzerland ($1.07B), Hong Kong ($658M), Belgium-Luxembourg ($345M), Guyana ($114M) and the United Arab Emirates ($106M). The top import origins are the United States ($410M), the Netherlands ($186M), China ($138M), Trinidad and Tobago ($113M) and Brazil ($38.3M). Suriname recorded a trade surplus of 97.40 USD Million in the third quarter of 2019.

10. Banking in Suriname Suriname's banking system consists of three major commercial banks: Republic Bank, DSB Bank, and Hakrinbank. The government is a part owner of Hakrinbank and DSB Bank. The three banks have a combined 80 percent market share. There are also five smaller local banks. The Central Bank of Suriname (CBvS) opened its doors on the 1st of April 1957 and has ever since fulfilled an important role in the Surinamese economy. The CBvS is a unique financial institution and cannot be simply compared to the commercial banks. It functions as the monetary institution entrusted with the issuance into circulation of the Surinamese currency. The CBvS is also the custodian of the international reserves of the country and safeguards that sufficient gold and foreign currency reserves are available to meet Suriname’s external payment obligations. The CBvS sees to it that the stability of the domestic and external value of the Surinamese currency is safeguarded. As the economy grew, that is, trade and commerce and lending and savings were expanding, the need for a larger stock of money and its circulation became evident.

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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