Benefits of Making Business in French Polynesia | Buy & Sell Business

1. BENEFITS OF MAKING BUSINESS IN FRENCH POLYNESIA 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 FRENCH POLYNESIA WWW.MERGERSCORP.COM

4. Country Overview French Polynesia is a sprawling possession of France in the Pacific Ocean, made up of 118 volcanic and coral islands and atolls, including Tahiti. For France this huge stretch of the Pacific - as big as Western Europe - remains strategically valuable. Atomic testing on the atolls enabled France to keep the nuclear clout it needed to remain one of the world's leading powers. There are five island groups - the Society Islands, the Tuamotu archipelago, the Gambier Islands, the Marquesas Islands and the Tubuai Islands. Tahiti is the most densely-populated island. European contact was gradual; the Spanish, Portuguese, Dutch and British were credited with the discovery of one or more of the islands. In the 18th century European traders and missionaries came, bringing diseases that wiped out much of the indigenous population.The missionaries tried to put a stop to local religious practices, nudity and other aspects of indigenous life. Some forms of Polynesian culture were lost for many years.

5. Executive Summary French Polynesia is a French overseas territory with significant autonomy under the terms of the 2004 Organic Law (2004-192). It comprises five archipelagos (Society, Tuamotu, Marquesas, Gambier and Australs). French Polynesia is spread over more than 5.3 million square kilometres, approximately the size of Europe. It is located in the middle of the South Pacific Ocean, approximately 6,000 kilometres east of Australia and 7,500 kilometres west of Chile. French Polynesia’s main island, Tahiti, and France took possession of French Polynesia as a whole in 1880. The population in 2017 was 283,007. French Polynesians are French citizens with the right to live anywhere in France. They are entitled to vote in local and French national elections. The most populous island is Tahiti, which is part of the Society Islands. French Polynesia was designated a French overseas territory in 1946 and given a Territorial Assembly on 25 October 1946. French Polynesia's constitutional status, its institutions, legal powers and relationship with France is defined by statute which has been amended several times since 1946 by the French Government. French Polynesia is divided into five island groups: the Austral Islands, the Marquesas Islands, the Gambier Islands, the Tuamotu Archipelago.

6. Introduction – Doing business in French Polynesia Since 1962, when France stationed military personnel in the region, French Polynesia has changed from a subsistence agricultural economy to one in which a high proportion of the work force is either employed by the military or supports the tourist industry. Tourism accounts for about one-fourth of GDP and is a primary source of hard currency earnings. Other sources of income are handicrafts, public works projects, aquaculture, pearl farming and deep-sea commercial fishing. The small manufacturing sector primarily processes agricultural products. The territory benefits substantially from development agreements with France aimed principally at creating new businesses and strengthening social services.

7. Conducting business in the French Polynesia When establishing a company in French Polynesia, an interested investor must do due diligence with regard to legal processes, international regulations, and sufficient investment for success. Get Registry and financial information about a business in French Polynesia Get independent and reliable information reports about French Polynesian firms on Info-clipper.com : Reduce credit risk and improve knowledge about your customers, suppliers, competitors in French Polynesia. Info-clipper.com is a pay-as-you-go, subscription-free service. Info-clipper.com propose valuable information to make the right business decision. Produced by Dun and Bradstreet as well as local sources, reports feature unbiased and independent information about businesses in French Polynesia and in America. - If you do business in French Polynesia and you want to reduce commercial and financial risk, our range of reports can help you. Credit reports integrate information such as : Failure score, Credit-Worthiness rating and payment history.

8. Taxation in French Polynesia French law states that qualified investments will receive specified tax benefits, including tax exemptions on imported goods needed for the construction, expansion, or renovation of hotels and other buildings for the tourist industry. Additional exemptions apply to: · environmental, agricultural, and fisheries fees; · taxes on major projects and roads; · the consumption tax; · the tourist development tax; · taxes on imported electrical equipment; · customs fees for information technology; and · the toll tax. (Védrine, supra.) In addition, qualified companies are granted exemptions for 15 years from property taxes on any construction they complete and for 10 years on corporate profits, once hotel operations begin. The value added tax (VAT) in French Polynesia has 3 rates : The normal rate of 16% which applies in a general way to the operations of importation, sales and deliveries. The normal rate of 10% which applies to all services except those subjected to the reduced tax. French Polynesian has no income taxes on individuals, no wealth taxes, and no inheritance taxes. New businesses are tax-exempt for their first 12 months of operation.

9. Trade French Polynesia is the 179th largest export economy in the world. In 2017, French Polynesia exported $149M and imported $1.32B, resulting in a negative trade balance of $1.17B. The top exports of French Polynesia are Pearls($102M), Non- fillet Fresh Fish ($9.9M), Coconut Oil ($8.2M), Vanilla ($5.73M) and Other Processed Fruits and Nuts ($3.96M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Refined Petroleum ($170M), Packaged Medicaments ($68.1M), Cars ($59.7M), Planes, Helicopters, and/or Spacecraft ($43.9M) and Other Edible Preparations ($22.9M). The top export destinations of French Polynesia are Japan ($93.7M), France ($18M), the United States ($16.7M), China ($5.29M) and Italy($3.29M). The top import origins are France($628M), South Korea ($117M), New Zealand ($96M), the United States ($85.7M) and China($61.6M).

10. Banking in French Polynesia There are three major banks operating in French Polynesia: Banque de Tahiti, Banque de Polynésie and Banque Socredo. They change major foreign currencies, but a transaction fee applies usually from 600 CFP to 950 CFP. In the Marquesas, there are Socredo agencies on 'Ua Pou, Nuku Hiva and Hiva Oa. There are three major banks operating in French Polynesia: Banque de Tahiti, Banque de Polynésie and Banque Socredo. They change major foreign currencies, but a transaction fee applies – usually from 600 CFP to 950 CFP.In the Australs group, Rurutu and Tubuai have some banking services.

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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