BENEFITS OF MAKING BUSINESS IN ST PIERRE & MIQUELON W W W. M E R G E R S C O R P. C O M
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BENEFITS OF MAKING BUSINESS IN ST PIERRE & MIQUELON
W W W. M E R G E R S C O R P. C O M
Country Overview Saint Pierre and Miquelon is a French archipelago south of the Canadian island of Newfoundland. Sparsely populated Miquelon Langlade island contains the Grand Barachois lagoon, home to seabirds and seals. The sole remnant of France's onceextensive possessions in North America, the Atlantic islands of St Pierre and Miquelon lie off the Canadian island of Newfoundland. Fish processing is the main economic activity although tourism is increasingly important and the territory capitalizes on its image as "France in North America". It depends on France for subsidies and Canada for goods and transport links. After periods of French and British rule, the territory was restored to France in 1816, becoming a French "territorial collectivity" in 1985. The prohibition era of the 1920s made the territory a centre for shipping whisky, wine and rum to the US but its end in 1933 plunged the islands into economic depression. The first Europeans were attracted by fish stocks around the islands, with a French fishing post being established in 1604. The descendants of the first settlers including Bretons, Normans and Basques make up much of the present population.
Executive Summary The inhabitants have traditionally earned their livelihood by fishing and by servicing fishing fleets operating off the coast of Newfoundland. The economy has been declining, however, because of disputes with Canada over fishing quotas and a steady decline in the number of ships stopping at Saint Pierre. The services sector accounted for 86% of GDP, the last year data is available for. Government employment accounts for than 46% of the GDP, and 78% of the population is working age. Fish farming, crab fishing, and agriculture are being developed to diversify the local economy. Recent test drilling for oil may pave the way for development of the energy sector. Trade is the second largest sector in terms of value added created, where it contributes significantly to economic activity. The extractive industries and energy sector is the third largest sector of activity in the archipelago, attributable in part to the construction of a new thermal power plant. The population of Saint Pierre and Miquelon is 5,806 as of Wednesday, January 29, 2020, based on the latest United Nations estimates. Saint Pierre and Miquelon population is equivalent to 7.0E-5% of the total world population.
Introduction – Doing business in St Pierre & Miquelon The business and economy of Saint Pierre and Miquelon, due to the islands location, has been dependent on fishing and servicing fishing fleets operating off the coast of Newfoundland. The economy has been declining, however, due to disputes with Canada over fishing quotas and a decline in the number of ships stopping at the islands. In 1992 an arbitration panel awarded the islands an exclusive economic zone of 12,348 square kilometres to settle a longstanding territorial dispute with Canada, although it represents only 25 percent of what France had sought. The islands are heavily subsidized by France, which benefits the standard of living. The government hopes an expansion of tourism will boost economic prospects, and test drilling for oil may pave the way development of the energy sector. Services franchises are usually very people-oriented, and this holds true for business services franchises as well. Ideal franchise business owners will be comfortable working with others and networking.
Conducting business in St Pierre & Miquelon The inhabitants have traditionally earned their livelihood by fishing and by servicing fishing fleets operating off the coast of Newfoundland. The economy has been declining, however, because of disputes with Canada over fishing quotas and a steady decline in the number of ships stopping at Saint Pierre. The services sector accounted for 86% of GDP in 2010. Government employment accounts for than 46% of the GDP, and 78% of the population is working age. The government hopes an expansion of tourism will boost economic prospects. Fish farming, crab fishing, and agriculture are being developed to diversify the local economy. Recent test drilling for oil may pave the way for development of the energy sector. Trade is the second largest sector in terms of value added created, where it contributes significantly to economic activity. The extractive industries and energy sector is the third largest sector of activity in the archipelago, attributable in part to the construction of a new thermal power plant in 2015.
Taxation in St Pierre & Miquelon
This entry records total taxes and other revenues received by the national government during the time period indicated, expressed as a percent of GDP. Taxes include personal and corporate income taxes, value added taxes, excise taxes, and tariffs. Other revenues include social contributions - such as payments for social security and hospital insurance - grants, and net revenues from public enterprises. Normalizing the data, by dividing total revenues by GDP, enables easy comparisons across countries, and provides an average rate at which all income (GDP) is paid to the national level government for the supply of public goods and services.
Trade Saint Pierre and Miquelon is the 215th largest export economy in the world. In 2017, Saint Pierre and Miquelon exported $4.24M and imported $54.3M, resulting in a negative trade balance of $50.1M. The top exports of Saint Pierre and Miquelon are Processed Fish ($670k), Molluscs ($637k), Processed Crustaceans ($577k), Non-fillet Fresh Fish ($314k) and Crustaceans ($210k), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Refined Petroleum ($6.02M), Other Edible Preparations ($2.52M), Packaged Medicaments ($2.47M), Cars ($1.84M) and Insulated Wire ($1.83M). The top export destinations of Saint Pierre and Miquelon are Canada ($1.79M), France ($691k), Portugal ($670k), Sudan ($338k) and Slovakia ($334k). The top import origins are France ($32.3M), Canada($17.6M), the Netherlands ($2.1M), BelgiumLuxembourg ($1.09M) and the United States ($352k).
Banking in St Pierre & Miquelon On 22 December 1998 the European Central Bank (ECB) received a request from the Council of the European Union for an ECB Opinion on a proposal for a Council Decision concerning the monetary arrangements in the French territorial communities of Saint-Pierre-et-Miquelon and Mayotte. The draft Council Decision, which is based on Article 109 (4) of the Treaty, provides for the extension of the euro area to the French territorial communities of Saint Pierre-et-Miquelon and Mayotte. It provides that the euro will become the currency of Saint-Pierre-et-Miquelon and Mayotte, circulate and have legal tender in these territories. As a measure necessary for the introduction of the euro in France, the draft Council Decision also aims to confer rights and impose obligations on the ECB and the national central banks, in particular the obligation to carry out monetary functions and operations of the European System of Central Banks (ESCB) in Saint-Pierre-et-Miquelon and Mayotte.
Our M&A Process TARGET APPRAISAL
APPROACH
DUE DILIGENCE
NEGOTIATION & CLOSE
POST MERGER INTEGRATION (PMI)
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.
Company general counsel; Lawyers; Senior management.
Company general counsel; Lawyers; Senior management/HR.
Key Areas Target & market analysis; Initial assessment of synergies & value drivers; Indicative valuation; Go or No-Go decision; Preparation of transaction documents (NDA – Nondisclosure Agreement/LOILetter 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;
Parties Involved CFO; Head of M&A; Accountants; Corporate finance advisors; Consultants.
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