Benefits of Making Business in Guyana | Buy & Sell Business

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

4. Country Overview Guyana, country located in the northeastern corner of South America. Indigenous peoples inhabited Guyana prior to European settlement, and their name for the land, guiana (―land of water‖), gave the country its name. It is the only English- speaking country of South America. The capital and chief port of Guyana is Georgetown. Guyana is bordered by the Atlantic Ocean to the north, by Suriname (along the Courantyne River) to the east, by Brazil to the south and southwest, and by Venezuela to the west. Guyana’s four main rivers—the Courantyne, Berbice, Demerara, and Essequibo—all flow from the south and empty into the Atlantic along the eastern section of the coast.

5. Executive Summary Guyana’s population is 799,600 thousand, the major Languages spoken are English, Portuguese, Spanish, Akawaio, Macushi, Waiwai, Arawak, Patamona and major Ethnic Groups are 43.5% East India, 30.2% Black(African), 16.7% Mixed, 9.1% Amerindian, 0.5% others. Since Guyana gained its independence in 1966, the country’s chief economic assets have been its natural resources, mainly its pristine rainforests, bauxite and gold reserves and rice fields, Guyana’s most important mineral resources are the extensive bauxite deposits between the Demerara and Berbice rivers that contribute to making the country one of the world’s largest producers of bauxite.

6. Introduction – Doing business in Guyana Ease of Doing Business in Guyana averaged 120.33 from 2008 until 2019, reaching an all time high of 140 in 2015 and a record low of 98 in 2008. Guyana is an emerging economy with enormous untapped potential. The country’s geographic position, combined with its natural resources, access to key export markets, English- speaking population and affordable labour present investors with profitable opportunities to do business in Guyana. Supported by stable macroeconomic policies, attractive investment incentives, and a regulatory environment and corporate tax regime.

7. Conducting business in Guyana The legal entities that can be set up are : •Sole Proprietorship •Partnerships •Private Limited Liability Company •Branch Setting up an office in Guyana continues to be a cumbersome process. The Guyana Office for Investment (GO-Invest) bills itself as a "one-stop shop" that provides information on requirements and special incentives for certain sectors; however, gaps still exist. Companies planning to register property can expect a six-step process that can take an average of 45 days to complete.

8. Taxation in Guyana Income is taxable when it accrues in or is derived from Guyana, whether or Self-employed persons make income tax payments in quarterly installments with any shortfall of taxes being made by 30 April following the year of income. Other employed persons have income taxes withheld under the pay-as-you-earn (PAYE) system. Tax returns must be filed by April 30 of the year following the year of income. Self-employed persons make income tax payments in quarterly installments with any shortfall of taxes being made by 30 April following the year of income.

9. Trade Guyana is the 130th largest export economy in the world. In 2017, Guyana exported $2.05B and imported $1.88B, resulting in a positive trade balance of $173M. In 2017 the GDP of Guyana was $3.62B and its GDP per capita was $8.16k. The top exports of Guyana are Gold ($848M), Railway Cargo Containers ($239M), Rice ($232M), Aluminium Ore ($155M) and Raw Sugar ($91.6M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Refined Petroleum ($348M), Excavation Machinery ($91.3M), Large Construction Vehicles ($41.8M), Cars ($41M) and Packaged Medicaments ($38.4M).

10. Banking in Guyana The Bank of Guyana, Guyana's central bank, implements monetary policy and oversees the operations of Guyana's six commercial banks, as well as other domestic financial institutions. In addition, local currency traders, known as ―cambios,‖ provide currency exchange services, although the industry is loosely regulated and believed to be potentially prone to money laundering. The Financial Institutions Act No.1 of 1995 created the regulatory framework for the regulation of banking and other financial business in Guyana. The Act specifies requirements for licensing of financial institutions, paid up capital, restrictions on banking and financial activities, supervision of licensed financial institutions, and provisions for insolvency.

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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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