Benefits of Making Business in Sweden | Buy & Sell Business

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

4. Country Overview Sweden, one of the Scandinavian countries located in northern Europe on the Scandinavian Peninsula. It is bordered by the Baltic Sea, the Gulf of Bothnia, the Kattegat, Skagerrak, and Öresund straits, by Norway in west and north. The Torne river forms most of Sweden's border with Finland in east. A portion of the country lies north of the Arctic Circle. The country shares maritime borders with Denmark, Germany, Poland, Russia, Lithuania, Latvia and Estonia. Sweden covers an area of 450,295 km² making Sweden roughly twice the size of Great Britain (island), or slightly larger than the U.S. state of California. The Swedish population of 9,9 million people (in 2016) is concentrated in the southern part of the country, capital and largest city is Stockholm, spoken language is Swedish, a North Germanic language similar to Danish and Norwegian, English is widely spoken. Despite its small population and large area, Sweden is a technologically advanced country with good infrastructure.

5. Executive Summary Sweden's position as one of the world's most highly developed post-industrial societies looks fundamentally secure. Unemployment is low and the economy strong. Public-private partnership is at the core of "the Swedish model", which was developed by the Social Democrats, who governed for most of the 70 years up to 2006. This mixed economy traditionally featured centralised wage negotiations and a heavily tax-subsidised social security network. The Swedes still enjoy an advanced welfare system, and their standard of living and life expectancy are among the highest in the world. Relative to its population size, Sweden has taken in far more migrants than any other EU country since the beginning of the migration crisis in 2015. This has put pressure on public services, and prompted a surge in support for the far-right Sweden Democrats party.

6. Introduction – Doing business in Sweden Start Immigration Consulting Business Immigration consulting business is one of the highly thriving businesses in Sweden and there loads of opportunities within this business space in Sweden. If you are a lawyer or someone who has background in immigration matters, and you intend starting your business in Sweden, then you should consider starting your own immigration consulting firm. Sweden has friendly immigration policy hence the influx of immigrants. Start Boat Rental Business Another small – scale services that an aspiring entrepreneur should consider starting in Sweden is boat rental services. Interestingly, you can start this business with a few small boats. Sweden’s extensive waterway availability throughout the south was exploited with the building of the Göta Canal in the 19th century, shortening the potential distance between the Baltic Sea south of Norrköping and Gothenburg by using the lake and river network to facilitate the canal. This goes to show that a boat rental service is bound to succeed in Sweden.

7. Conducting business in Sweden by a large wealth of trees and shrubs. The beech is the most dominant tree, but oak can also form smaller forests. Other important trees and shrubs in this zone include hornbeam, elder, hazel, fly honeysuckle, linden (lime), spindle, yew, alder buckthorn, blackthorn, aspen, European rowan, Swedish whitebeam, juniper. Lawn Care Services Company If you are considering starting a small scale business in Sweden, then one of your options is to start a lawn care services company. A lawn care company is a company that takes care of the lawn of its clients. It could be the lawn of a residential building, business premises, school or even a football pitch. Even though lawn care business might not be amongst the money – spinning businesses in Sweden, but they have a very large market that is readily available for them. Start a Sawmill Cottage Business Sawmill cottage business is yet another small – scale business that is highly thriving in Sweden and there are opportunities for newbies to come into the industry. This business is ideal in Sweden because some regions in the country is characterized

8. Taxation in Sweden the long-term, the Sweden Personal Income Tax Rate is projected to trend around 57.20 percent in 2020, according to our econometric models. Sweden has a flat tax rate of 30% for capital gains. The Swedish tax authorities defines capital gains as incomes that can not be attributed to business operations or service. For example; rental of private assets, dividends, profit from the sale of assets and interest payments. Sweden's corporation tax rate is 22%. Taxable income is subject to corporate tax at a flat rate of 21.4% applying from 1 January 2019, and is to be decreased to 20.6% in 2021. No municipal or local income taxes apply to Swedish corporations. Personal Income Tax Rate in Sweden is expected to be 57.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In

9. Trade In 2017 the GDP of Sweden was $538B and its GDP per capita was $50.2k. The top exports of Sweden are Cars ($8.87B), Refined Petroleum ($7.86B), Packaged Medicaments ($6.12B), Vehicle Parts ($5.48B) and Delivery Trucks ($3.24B), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Cars ($9.2B), Crude Petroleum ($7B), Vehicle Parts ($6.24B), Refined Petroleum ($5.83B) and Broadcasting Equipment($4.09B). The top export destinations of Sweden are Germany ($16.1B), Denmark ($10.4B), Norway ($10.1B), the United States ($9.8B) and the United Kingdom($8.89B). The top import origins are Germany($27.3B), the Netherlands ($11.9B), Denmark ($9.6B), Norway ($9B) and Belgium-Luxembourg ($7.58B). Sweden is the 31st largest export economy in the world and the 5th most complex economy according to the Economic Complexity Index (ECI). In 2017, Sweden exported $143B and imported $141B, resulting in a positive trade balance of $2.28B.

10. Banking in Sweden present in 19 countries. Headquartered in Stockholm, the bank operates through 1,400 branches in Sweden, Denmark, Norway, Finland, Estonia, Latvia, and Lithuania. SEB Bank Founded in 1972, Skandinaviska Enskilda Banken AB (SEB) is headquartered in Stockholm. The bank offers financial, life insurance, and Eurocard services. It also operates in Baltic countries, New York, São Paulo, London, Luxembourg, Geneva, Warsaw, Moscow, St Petersburg, Kiev, Beijing, Shanghai, Hong Kong, Singapore, and New Delhi. The bank currently employs 16,000 individuals and serves 400,000 small and medium-sized enterprises (SMEs), 3,000 corporate and institutional customers, and more than four million individuals. Nordea Bank AB Founded in 2000, Nordea Bank is the largest financial group in the Nordic region. The bank employs around 31,596 staff and is

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