A big advisory firm on Bonaire was appointed to describe the current situation, via this Information Memorandum below, the potential of consultancy company and its businesses in the Caribbean, and specifically on Bonaire.

The consultancy company
The consultancy company specializes in content acquisitions (new content or renegotiating existing content deals), World Wide content delivery and can advise on all technology matters and find solutions required for a successful business in the TV Industry.

Team clients
The team has a background of 30 years in management positions at Liberty Global, Nethold TWestern Europe/Multichoice and Vivendi SE/Canal+. Our clients and partners vary from Global Players to smaller businesses: Cable operators, ISP’s, DVB-T operators and leading TV channel distributors. Liberty Global (Caribbean), Digicel Group (Caribbean), etar (Aruba), Telem Group (St.Maarten SXM), Telesur (Suriname), Telbo (Bonaire), NAP of the Americas, ECP Curacao, Vubiquity, Discovery, Eurosport, Viacom, ESPN, Dutch Public TV Channels NPO…to name a few we have worked with and in most cases still do.

Financial performance
The consultancy company was founded in 2006. The organization has grown over the past 17 years into a stable player in the field of media advice, such as digital television and the technical processes related to it. The organization has achieved stable revenue of between $150,000 and $200,000 over the past few years. Considering that the operating expenses are relatively low, the entity has earned a result of between $50,000 and $100,000 in recent years. The client portfolio has proved to be stable. The company is a healthy organization with hardly any external debts.

Figures
In the annual figures provided to you, you can see that the company does not pay profit tax on Bonaire on the annual profits. Bonaire doesn’t have a profit tax. Furthermore, the tax to be paid when declaring dividend is currently 5% on Bonaire. This means that an organization established on Bonaire and subject to the tax on Bonaire, does not have to pay much taxes on the result achieved, relatively speaking.

Potential
In the section on the financial performance of the organization above, it has already been indicated that the organization is healthy, with a stable turnover and profit per year, as well as a stable client portfolio.

There are also ample opportunities in the region for further growth of the operating activities. With regard to the services to be provided, the company can gain a foothold in, for example, Jamaica and Trinidad & Tobago. This could lead to a significant increase in turnover and profit per year. Given the fact that Bonaire has no profit tax, looking at the tax perspective, it may be interesting to deliver those services to be provided from Bonaire.

Requirements on Bonaire
A company must apply for a business permit before settling on Bonaire. A condition for obtaining a business permit is having a local representative. The current owner of the company is willing to serve as local representative/director for half a year in the event of a possible takeover of the company. It is therefore easier to gain a foothold on Bonaire, on the one hand because there is already a basis with regard to the client portfolio, and on the other hand because a local representative is already available.

Potential value of the company
Based on the financial information received from you concerning the last 4 years of the consultancy firm, we performed some calculations of the potential value of the company. Based on those calculations, you informed us that you have set the asking price for Manycast Consultancy at $ 550,000.