Benefits of Making Business in malta | Buy & Sell Business

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

4. Country Overview Malta is an archipelago in the central Mediterranean between Sicily and the North African coast. It's a nation known for historic sites related to a succession of rulers including the Romans, Moors, Knights of Saint John, French and British. It has numerous fortresses, megalithic temples and the Ħal Saflieni Hypogeum, a subterranean complex of halls and burial chambers dating to circa 4000 B.C.

5. Executive Summary Malta is a history-rich small archipelago in the Mediterranean Sea and one of the smallest countries in Europe. The islands, situated east of Tunisia and about 100 km (60 mi) south of the island of Sicily (Italy), are a popular tourist destination. Malta, officially the Republic of Malta, consists of the main island Malta and the smaller islands of Gozo and Comino. The country covers an area of 316 km²; compared, it is about twice the size of Washington, DC, and it would fit into Luxembourg eight times. Malta has a population of 494,000 people (in 2019). The country is in the Top10 of the most densely populated countries in the world. The capital city is Valletta on the island of Malta. The official languages are Maltese and English.

6. Introduction – Doing business in Malta The Maltese Island is one of the fastest growing economies in the European Union. Although on the smaller side, Malta makes up for its size in the abundance of opportunities that are waiting to be discovered. Malta is bustling with culture and the sought after the Mediterranean lifestyle. The island is home to an exuberant lifestyle and exclusive cuisines that bode well with those looking to venture into a new business. Over recent years, Malta has become a lucrative dominion to conduct business affairs. This is because of its strong geographic position and its strong GDP growth amidst a time of global recession.

7. Conducting business in Malta minimum share capital required to incorporate a Maltese company is €1,165, with only €245 (20%) required to be paid up. A payment to the Registrar of Companies of €240 is also due upon incorporation. A company incorporated in Malta is deemed to be both domiciled and resident in Malta and is taxable on its worldwide income. If your company is not incorporated in Malta, but the management and control of the business is based in the country, it is deemed to be resident in Malta. Incorporating a company in the country is quite straight forward, and the process typically takes no longer than 48 hours. The

8. Taxation in Malta A flat tax rate of 15% is charged on foreign income remitted to Malta while income which arises in Malta is taxed at a flat tax rate of 35%. In addition, a minimum annual tax of EUR 15,000 is payable (versus the EUR 25,000 for the main applicant and EUR 5,000 for each dependent under the HNWI residence scheme).

9. Trade Malta is the 113th largest export economy in the world. In 2017, Malta exported $3.87B and imported $12.2B, resulting in a negative trade balance of $8.35B. In 2017 the GDP of Malta was $12.5B and its GDP per capita was $41k. The top exports of Malta are Integrated Circuits ($833M), Refined Petroleum ($765M), Packaged Medicaments ($427M), Models and Stuffed Animals ($187M) and Low-voltage Protection Equipment ($138M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Refined Petroleum ($4.14B), Passenger and Cargo Ships ($1.52B), Recreational Boats ($593M), Crude Petroleum ($344M) and Planes, Helicopters, and/or Spacecraft ($327M).

10. Banking in Malta The 2002 Central Bank of Malta Act and the 1994 Banking Act govern banking in Malta; the Malta Financial Services Authority (MFSA) primarily administers the banking legislation. The two major banks in Malta are HSBC (Malta) Ltd. and Bank of Valletta. They each operate about 40 branches across Malta, and together they control over 80 percent of the Maltese banking market. The next three leading banks are Lombard Bank (Malta), Banif Bank, and APS Bank. Commercial banks offer all forms of commercial banking services. Interest rates on foreign exchange deposits are in line with those prescribed by international money markets.

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