Benefits of Making Business in Grenada | Buy & Sell Business

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

4. Country Overview Grenada is a Caribbean country comprising a main island, also called Grenada, and smaller surrounding islands. Dubbed the ―Spice Isle,‖ the hilly main island is home to numerous nutmeg plantations. It‘s also the site of the capital, St. George‘s, whose colorful homes, Georgian buildings and early-18th-century Fort George overlook narrow Carenage Harbour. To the south is Grand Anse Beach, with resorts and bars. The southern Grenadines—the largest of which is Carriacou, about 20 miles (32 km) north-northeast, with an area of 13 square miles (34 square km)—are a dependency

5. Executive Summary Grenada, byname Isle of Spice, island country of the West Indies. It is the southernmost island of the north-south arc of the Lesser Antilles, lying in the eastern Caribbean Sea about 100 miles (160 km) north of the coast of Venezuela. Oval in shape, the island is approximately 21 miles (34 km) long and 12 miles (19 km) wide.. The capital, St. George‘s, on the southwest coast, is also the main port, having a fine natural harbour, and its picturesque pastel-coloured houses rise up the hillsides from the waterfront. The waterfront itself is known as the Carenage because island schooners were once careened there. St. George‘s is the yachting and charter-boat centre of the eastern Caribbean.

6. Introduction – Doing business in Grenada The rank of Grenada improved to 146 in 2019 from 147 in 2018. Ease of Doing Business in Grenada averaged 113.58 from 2008 until 2019, reaching an all time high of 147 in 2018 and a record low of 68 in 2010. source: World Bank Its rural economy is dominated by the agricultural sector and the country is one of the original ‗spice‘ islands and continues to export nutmeg and mace along with bananas and cocoa. The agricultural sector provides direct export earnings for Grenada. The services sector now contributes 81% of GDP to Grenada‘s economy..

7. Conducting business in Grenada To incorporate a Grenada offshore company a few basic important steps must be followed. For instance, an offshore agent who is registered and authorized to provide offshore company setup services in Grenada must be provided with the necessary identification documents of the persons who intend to own the company, be a director and hold shares. Specific incorporation rules exist in the International Business Companies Act for the use, application and approval of names, regulation of business activities with regard to where business can be conducted, the types of businesses which cannot be as well as the issuance, transfer, class and types of shares a Grenada offshore company can issue, company liquidation.

8. Taxation in Grenada Tax residents and individuals who are not tax residents of Grenada pay tax on the income received within the island. The tax rate for residents is 30%, for non-residents – 15%. The non-taxable minimum income of individuals is 60,000 East Caribbean Dollars (XCD). All individuals are required to file tax declarations. There is no gift, inheritance, capital gains and world income tax in Grenada. Legal entities pay 30% tax on their income.

9. Trade Grenada is the 197th largest export economy in the world. In 2017, Grenada exported $36.3M and imported $187M, resulting in a negative trade balance of $151M. In 2017 the GDP of Grenada was $1.13B and its GDP per capita was $15.1k. The top exports of Grenada are Nutmeg ($10M), Non-fillet Fresh Fish ($6.39M), Wheat Flours ($2.4M), Cocoa Beans ($2.31M) and Other Fruits ($1.62M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Poultry Meat ($9.7M), Cars ($9.7M), Other Furniture ($5.69M), Hard Liquor ($5.09M) and Industrial Fatty Acids, Oils and Alcohols ($4.8M)..

10. Banking in Grenada Grenada has a range of well-established banking and financial services within its relatively small economy. However, the island suffered under the global financial crisis, with the collapse of various companies offering financial services, from which the government is working hard to recover. The banking sector consists of the Grenada Development Bank (state-owned) and five commercial banks, four of which are local offices of international commercial banks (2011). These comprise the First Caribbean International Bank (Barbados) Limited, Grenada Co-operative Bank Limited, RBTT Bank Grenada Limited, Bank of Nova Scotia Limited, alongside the native Republic Bank (Grenada). .

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