1 / 13

Benefits of Making Business in Sao Tome & Principe | 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

mergerscorp
Télécharger la présentation

Benefits of Making Business in Sao Tome & Principe | Buy & Sell Business

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. BENEFITS OF MAKING BUSINESS IN SAO TOME & PRINCIPE 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 SAO TOME & PRINCIPE WWW.MERGERSCORP.COM

  4. Country Overview Sao Tome and Principe, once a leading cocoa producer, consists of two islands of volcanic origin and a number of smaller islets lying off the coast of Africa. From the late 1400s Portugal began settling convicts on Sao Tome and establishing sugar plantations with the help of slaves from the mainland. The island was also important in the transshipment of slaves. The colony's aspirations for independence were recognised after the 1974 coup in Portugal and at first the Movement for the Liberation of Sao Tome and Principe was the country's sole political party. However, the 1990 constitution created a multi- party democracy. The island of Principe assumed autonomy in 1995. The country hopes to reduce its dependence on donors and cocoa exports by exploiting offshore oil. Sao Tome and Principe, officially the Democratic Republic of São Tomé and Príncipe, an archipelago of volcanic origin in the Gulf of Guinea close to the equator, located about 320 km (200 mi) west of Gabon on Africa's mainland. Principe island lies west of Equatorial Guinea.

  5. Executive Summary The island's interesting volcanic geology, as well as its rich flora and fauna have been admired and studied by numerous travelers, scientist, and nature-lovers. The islands support high numbers of endemic species. Given the islands' small size, they are comparable with other island centers of endemism such as the Galápagos and the Hawaiian archipelagos. Sao Tome islands have recently designated protected areas to be known as the Obo National Park with include primary rainforests filled with exotic birds and lush vegetation. There are over 700 species of native plants including 100 unique orchids flowers and 143 birds species, many of which are only found in this islands. Officially named Democratic Republic of Sao Tome and Principe, or just Sao Tome Islands for short, this archipelago is located in Gulf of Guinea approximately 180 miles off african west coast. It's made up of two major volcanic islands surrounded by eight small islets, of which 6 are inhabited. With a total land area of 1001 sq km and a population of 150,000 inhabitants, Sao Tome and Principe is the smallest country in africa, after Seischelles.

  6. Introduction – Doing business in Sao Tome & Principe Sao Tome and Principe is ranked 170 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Sao Tome and Principe remained unchanged at 170 from 170. The Investor's Guide to São Tomé and Príncipe intends to make São Tomé and Príncipe better known to global investors. The principal investment opportunities are identified in the areas of agriculture (cocoa, flowers, fruits and vegetables for export), adventure and eco-tourism, fisheries, regional trans-shipment, and petroleum services..

  7. Conducting business in Sao Tome & Principe There are a number of opportunities that could improve the country’s economy. Tourism is still in its infancy, and although it is understood that the country should not (and cannot) develop in a mass tourism destination, it should be possible to expand its tourist facilities and infrastructure, focusing on added value tourism. Agriculture, horticulture, floriculture and fisheries are other sectors that can be developed further. Farmers have traditionally not used pesticides and similar products, so that a large part of the country’s production (and territory) can be classified as ecological. Fishing is also still done artisanally and therefore in a sustainable manner. Even if it is not possible to exploit its own oil and gas reserves, the islands could function as a service centre for the region, such as financial and corporate services, and as a transport hub for regional shipping and airline connections. The fact that the country’s means of communication have been improved significantly due to its connection to mainland Africa by optical fibre, will make it easier to perform this function.

  8. Taxation in Sao Tome & Principe There are 4 types of taxes imposed by the government on imported goods: an 8 percent transaction tax; import duties ranging from 0 percent on basic foodstuff and pharmaceuticals to between 6 and 50 percent on alcoholic drinks and 10 and 66 percent on petroleum products; a 3.5 percent customs duty; and a consumption excise tax , which varies significantly on different types of goods (from 0 percent on basic foodstuff to 250 percent on tobacco) and is levied on the after-tax value on goods. Export and import taxes, customs duties, and sales tax are the main sources of revenue from taxation. Income tax accounted for only 7% revenue in 1985. In 1997, the government began a program to improve tax collection. In 2002, remarkable increases in tax revenue were reported. This evaluation covers three of the four major components of the TCP: -Increase tax revenue through higher voluntary compliance with tax laws; -Increase tax revenue through strengthened tax enforcement; and -Improve the business environment.

  9. Trade Sao Tome and Principe is the 207th largest export economy in the world. In 2017, Sao Tome and Principe exported $15.7M and imported $140M, resulting in a negative trade balance of $124M. In 2017 the GDP of Sao Tome and Principe was $392M and its GDP per capita was $3.35k. The top exports of Sao Tome and Principe are Cocoa Beans ($9.5M), Refined Petroleum ($1.54M), Other Furniture ($319k), Chocolate ($318k) and Raw Cotton($301k), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Electric Generating Sets ($6.05M), Cars ($5.85M), Rice ($5.69M), Wine ($3.49M) and Soybean Oil ($3.4M). The top export destinations of Sao Tome and Principe are Poland ($3.69M), the Netherlands ($1.7M), Spain ($1.65M), Guyana ($1.54M) and Belgium-Luxembourg($1.33M). The top import origins are Portugal($78.9M), China ($9.6M), Nigeria ($5.59M), the United States ($4.28M) and France ($4.1M). Sao Tome And Principe borders Benin, Cameroon, Niger and Chad by land and Gabon, Equatorial Guineaand Nigeria by sea.

  10. Banking in Sao Tome & Principe The Republic of Sao Tome and Principe (STP) is a lower middle income, developing, small island state with a fragile economy. It is highly vulnerable to exogenous shocks. An archipelago divided into six districts and the Autonomous Region of Príncipe (Região Autónoma do Príncipe), it is located in the Gulf of Guinea, 350 km off the west coast of Africa. With a surface area of 1,001 sq. km, this Portuguese-speaking country has a population of nearly 200,000 people, and a Gross National Income (GNI) per capita of $1,890 as of 2018. Banco Central de Sao Tome e Principe (Central Bank of Sao Tome and Principe) is a Central Bank located in Sao Tome Sao Tome and Principe, Africa, and was founded in 1975. Central Bank of Sao Tome and Principe is the only issuer entity of the country and the state's banker. It is responsible for development, implementation and monitoring monetary policy, formulation, managing and implementation of exchange rate policy, ensuring internal and external stability of the national 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

  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

More Related