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Benefits of Making Business in Lesotho | Buy & Sell Business

<br>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 Lesotho | Buy & Sell Business

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

  4. Country Overview Lesotho, country in Southern Africa. A scenic land of tall mountains and narrow valleys, Lesotho owes a long history of political autonomy to the mountains that surround it and protect it from encroachment. Since the Neolithic Period, the mountain kingdom was the domain of Khoisan-speaking hunter-gatherers. In the 19th century the Sotho, led by Moshoeshoe I, took control of the region. It remained independent until it became a British protectorate, one of three British High Commission Territories (the others being Bechuanaland and Swaziland). Except for English, all the main languages spoken in Lesotho are members of the Niger-Congo language family. Sotho, a Bantu language, is spoken by the majority of the population, though both Sotho and English are official languages in the country.

  5. Executive Summary Lesotho’s performance in attracting FDI has been credible by regional standards, particularly for a landlocked nation. In recent years, FDI inflows have been mainly driven by investments in the mining sector. Lesotho, a relatively small market of only 1.9 million people, is a member of the Southern African Customs Union (SACU) and the Southern African Development Community (SADC) market, which allows foreign businesses to use Lesotho as a gateway to larger regional markets. Lesotho is a member of the International Labor Organization (ILO) and has ratified 23 international labor conventions, including all the eight fundamental human rights instruments. Lesotho's Labor Code Order of 1992 and its subsequent amendments are the principal laws governing terms and conditions of employment in Lesotho. .

  6. Introduction – Doing business in Lesotho Lesotho is ranked 122 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. ... Ease of Doing Business in Lesotho averaged 122.67 from 2008 until 2019, reaching an all time high of 143 in 2011 and a record low of 100 in 2016. Tourism is one sector that has significant employment potential; however it is not fully exploited. Lesotho has one of the most pristine and unspoiled natural environments in the region, with spectacular scenery and a huge potential for eco-tourism. The Government is interested in attracting more U.S. tourists and U.S. investment in the tourism sector. There are opportunities for U.S. business in franchising, such as restaurants, services, and retail shops. Opportunities in commercial agriculture include trout farming and livestock. .

  7. Conducting business in Lesotho incorporated under Companies Act No 18 of 2011 and Companies Regulations 2012. The Registrar will provide the company with Standard Model Articles and Particulars of the Company, but a company can develop its own articles. Business Licensing Licences are issued through the ONE STOP BUSINESS FACILITATION CENTRE in Maseru as well as the local offices of Ministry of Trade and Industry, Cooperative & Marketing. Manufacturing Licensing Manufacturing licenses are issued at OBFC under Ministry of Trade and Industry. . Companies in Lesotho are registered by the office of the Registrar Companies (Registrar) at OBFC. The companies are

  8. Taxation in Lesotho The Lesotho Revenue Authority (LRA), which was established by Act of Parliament in 2001 and became operational in 2003, is principally responsible for the assessment, collection and remittance to the Government of public revenues in Lesotho. Company Income Tax (CIT) : For manufacturing companies and commercial farming 10%, For Other companies 25% Fringe Benefit Tax (FBT) : Fringe Benefit Tax is chargeable on taxable amount at the rate of 40% VALUE ADDED TAX (VAT) : Rates for VAT are as follows: 0% - Exports and basic commodities 8% - Electricity 12% - Telecommunications

  9. Trade Lesotho recorded a trade deficit of 2734.93 LSL Million in the second quarter of 2019. Lesotho runs systemic trade deficits due to import dependency on fuel, food and capital equipment. Exports in Lesotho increased to 3512.91 LSL Million in the second quarter of 2019 from 3254.19 LSL Million in the first quarter of 2019. Lesotho main exports are clothing (40 percent of total exports) and diamonds (22 percent). Others include: road vehicles, water, wool and tobacco. Main export partners are: the United States (35 percent) and South Africa (30 percent) followed by Belgium and Canada.

  10. Banking in Lesotho Lesotho’s banking system consists of the Central Bank of Lesotho (CBL) and commercial banks. The CBL is responsible for management of the country's foreign exchange reserves, administration of exchange controls, and regulation of financial institutions. The banking system is dominated by three South African banks : Standard Lesotho Bank, Ned Bank Lesotho, First National Bank Lesotho. All banks offer a comprehensive range of products and services through branch and electronic banking infrastructures. Electronic commerce (e-commerce) is still a new concept in Lesotho; the Ministry of Communications has developed proposals for electronic commerce to be more widely developed, and an e-commerce legislation is being drafted. Electronic funds transfers are limited to $10,000 per transaction for transfers to local bank accounts, while for external bank accounts; the limit is roughly $50 million.

  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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