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Benefits of Making Business in Lithuania | Buy & Sell Business

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 Lithuania | Buy & Sell Business

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

  4. Country Overview Lithuania, country of northeastern Europe, the southernmost and largest of the three Baltic states. Lithuania is the largest and most southerly of the three Baltic republics. The Four Biggest Cities In Lithuania are : Vilnius, Kaunas, Klaipėdaand Šiauliai. Vilnius is the capital of Lithuania and the most populous city and the country's seat of government. Lithuania’s geographical size is 65 286 km2. The current population of Lithuania is 27.9 Lakhs as of January 2020, based on Worldometer elaboration of the latest United Nations data.

  5. Executive summary Lithuania, located in Eastern Europe along the Baltic Sea, is bordered by Latvia to the north, Belarus to the south and east, Poland to the south, and Russia (Kaliningrad district) to the southwest. The capital of Lithuania is Vilnius. The official language is Lithuanian, and the currency is the euro (EUR). On 11 March 1990, Lithuania declared its independence. Lithuania gained membership in the World Trade Organization (WTO) in May 2004 and joined the North Atlantic Treaty Organization (NATO) and the European Union (EU) in the spring of 2004. Lithuania joined the Eurozone in 2015. As of 5 July 2018, Lithuania is a member of the Organisation for Economic Co-operation and Development (OECD).. In 2018, the gross domestic product (GDP) of Lithuania grew by 3.5%. For 2019, the growth of GDP is expected to be 3.7%. The commercial environment is generally friendly to foreign companies, and most of the EU directives are implemented into the Lithuanian legislative system.

  6. Introduction – Doing business in Lithuania Lithuania is ranked 14 among 190 Economies in the ease of doing business, according to the latest World Bank annual ratings. Lithuania has a developed private-enterprise economy that is actively growing due to an advantageous geographic location in Eastern Europe, highly developed transport connections, a modern seaport, IT network, and a highly educated, but comparatively cheaper, labour force. The Lithuanian economy is oriented into manufacturing and service industries, including food, the petroleum and chemical industry, information technology, financial services and service centres, transportation, construction, biotechnologies, research and development (R&D), and tourism.

  7. Conducting business in Lithuania main types of them: • individual enterprise • small partnership (MB) and • private limited liability company (UAB). Whether you are a new startup in Lithuania or an experienced entrepreneur - you might need to meet specific requirements or acquire permits to operate in specific business areas. Failing to comply with the requirements or acquire permits may have negative consequences on your business or cause legal responsibility. In Lithuania, you can run a business by implementing individual activity or starting a company. As for companies, there are 3

  8. Taxation in Lithuania Companies must register as VAT payers if their income from economic activities over a period of 12 months exceeds 45k EUR. There is no threshold for voluntary registration. 0% VAT rate is applicable to goods exported to the EU as well as transport and other services directly related to the export of these goods. The standard rate for corporate income tax (called profit tax in Lithuania) is 15%. An enterprise with gross income below 300k EUR during a tax year and with the average number of employees not exceeding 10 has the right to apply a 5% rate.

  9. Trade Lithuania is the 66th largest export economy in the world and the 34th most complex economy according to the Economic Complexity Index (ECI). In 2017, Lithuania exported $26.2B and imported $30.8B, resulting in a negative trade balance of $4.56B. In 2017 the GDP of Lithuania was $47.2B and its GDP per capita was $33k. The top exports of Lithuania are Refined Petroleum ($3.85B), Other Furniture ($1.26B), Rolled Tobacco ($923M), Wheat ($473M) and Polyacetals ($468M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Crude Petroleum ($3.55B), Cars ($1.15B), Packaged Medicaments ($942M), Refined Petroleum ($837M) and Tractors ($654M).

  10. Banking in Lithuania The Bank of Lithuania acts as the central monetary authority in the country. The Lithuanian central bank sits as a non-Eurozone member of the European System of Central Banks. It oversees financial institutions and banks in Lithuania, formulates and implements monetary policy, maintains price stability, and issues the national currency. Currently, 85 credit institutions operate in Lithuania, comprising six banks in Lithuania, seven branches of foreign banks, and 71 credit unions. Based on the Global Competitiveness Report 2017-2018 of the World Economic Forum, banks in Lithuania obtained a score of 4.8 in the soundness category, ranking 72nd on the WEF’s list.

  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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