Benefits of Making Business in Sierra Leone | Buy & Sell Business

1. BENEFITS OF MAKING BUSINESS IN SIERRA LEONE 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 SIERRA LEONE WWW.MERGERSCORP.COM

4. Country Overview Sierra Leone, a tropical country on the coast of West Africa, bordered by the Atlantic Ocean in south west, by Liberia in south east and it is half surrounded by Guinea in north and north east. In the late 18th and early 19th century the region around Freetown was used by the British to 'resettle' freed slaves, London's "Black Poor", and many African American refugees from the American Revolution. Sierra Leone was since 1808 a British Crown Colony, the country gained independence in 1961. Today it is the poorest nation in the Commonwealth. With an area of 71,740 km² the country is just slightly larger than Ireland or slightly smaller than the U.S. state of South Carolina. The country's landscape offers a flat coastal belt, the eastern half of the nation is covered by hills and high mountains, part of the Guinea highlands, Mount Bintumani within the Loma mountains in Koinadugu is the highest peak in the country. Main rivers are the Tai river, the Sewa , and the Moa River. Sierra Leone has a population of 7 million people, its largest city, chief port and capital is Freetown, the city is situated in north west of the country at the coast of the North Atlantic Ocean.

5. Executive Summary Sierra Leone, a country in West Africa, has a special significance in the history of the transatlantic slave trade as the departure point for thousands of west African captives. The capital, Freetown, was founded as a home for repatriated former slaves in 1787.But the country's modern history has been overshadowed by a brutal civil war that ended in 2002 with the help of Britain, the former colonial power, and a large United Nations peacekeeping mission. Sierra Leone has experienced substantial economic growth in recent years, although the ruinous effects of the civil war continue to be felt. The country is also rich in diamonds and other minerals. The trade in illicit gems, known as "blood diamonds" for their role in funding conflicts, perpetuated the civil war. The government has sought to crack down on the trade.

6. Introduction – Doing business in Sierra Leone African Countries especially Sierra Leone is a good place to set up a business. The Oil and Gas business is one of the most lucrative business in Sierra Leone. Many people are making billions from this Diesel Supply Business; Restaurant business is one of the business that has been creating millionaires in Sierra Leone for decades. There will always be the need for places to eat out. You can take advantage of this opportunity and start your own restaurant business in Sierra Leone today; The hotel business is another lucrative business that is currently booming in Sierra Leone. Start a hotel business in Sierra Leone; Agriculture in Sierra Leone as a source of income is still highly beneficial for the nation and other Africa as a continent, because of the abundance of farmable lands and an increase in the number of yearly entrants. Starting a provision store is good business to do considering how profitable and lucrative it can be. The business entails having a shop or space you stock up with basic house hold items and products that people use and need on a daily basis.

7. Conducting business in Sierra Leone In order to register your Corporate Entity in Sierra Leone we need the following information: • The proposed name of the company • Nature of Business • Name, Address and Contact Telephone numbers of Directors and Shareholders • Business Address • Name of Company Secretary • Color Copies of passport details for directors, shareholders and secretary. Steps to Register your business Conduct a name search to check on the availability of the Company name and complete your application -Prepare and submit the Memorandum and Articles of the - Association of your company and supporting documents Make payment

8. Taxation in Sierra Leone The Personal Income Tax Rate in Sierra Leone stands at 35 percent. The Corporate Tax Rate in Sierra Leone stands at 30 percent. Resident companies pay tax at up to 30% on their worldwide chargeable income. • Non-Resident companies pay tax at the rate of 30% on income sourced in Sierra Leone. • Capital gains tax is payable by a chargeable person at the rate of 30% of the capital gain accruing to or derived by that chargeable person from the disposal of a chargeable asset owned by a chargeable person • A branch in Sierra Leone of a non-resident company is subject to tax on repatriated income at the rate of 30% as though such income were a dividend taxable at the rate of 10%, this tax being in addition to income tax on the chargeable income of the branch.

9. Trade Sierra Leone is the 152nd largest export economy in the world. In 2017, Sierra Leone exported $839M and imported $1.3B, resulting in a negative trade balance of $457M. In 2017 the GDP of Sierra Leone was $3.78B and its GDP per capita was $1.53k. The top exports of Sierra Leone are Iron Ore ($209M), Titanium Ore ($141M), Diamonds ($104M), Cocoa Beans ($72.3M) and Aluminium Ore ($68.5M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Rice ($190M), Cars($41.2M), Cement ($29.2M), Delivery Trucks ($25M) and Packaged Medicaments ($24.9M). The top export destinations of Sierra Leone are China ($299M), Belgium-Luxembourg ($133M), the Netherlands ($81.9M), Romania ($51.1M) and the United States ($26.2M). The top import origins are China ($253M), India ($99M), the United States ($74M), Belgium-Luxembourg ($71.5M) and the Netherlands($60.6M).

10. Banking in Sierra Leone Prior to the establishment of the BANK OF SIERRA LEONE, the West Africa Currency Board was responsible for the issue of currency in Sierra Leone. It was obliged to buy and sell the currency it had issued, the West African Pound, at fixed rates against the Sterling in London. Following the attainment of independence in 1961 however, the need was felt for a separate monetary institution controlled by Sierra Leone. In his 1962/63 Budget Speech, the then Minister of Finance asserted, “No independent country can regard itself as truly independent until it has its own national currency. They did however invest in the stock market. The time is not too distant when Sierra Leone too will have its own central bank”. Preliminary arrangements for the establishment of a central bank including the drafting of the legislation then commenced. On 27th March, 1963, the Bank of Sierra Leone Act became law and the Bank began operation on 4th August, 1964, the day Sierra Leone changed to the decimal system of currency.

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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