Things you need to consider when buying a business for E2 or L1 Immigration Visas
Time and time again as a business broker in Orlando I meet expats from around the world who want to immigrate to America. They spend incredibly large amounts of money and time worrying about the immigration portion / “getting the visa” and what are the requirements of said program. I won’t endeavor to weigh in on this process but after some 200 of these transaction I would say the visa and its awarding is the least of your concerns (assuming your linked up with a good consultant/ attorney and your following the rules). There are however many other items that are often not accounted for in the consideration. Here are a few:
1. Working Capital and Cash Flow: When an expat comes to the US they have not credit history and as such how businesses, landlords, vendors and in effect everyone (banks included) treat you are different. Bottom line you need a certain level of cash on hand in addition to the purchase price of a business. So if you tell me you have 100k USD in total….Im going to tell you that you don’t….its more like 70 to 75 depending on the business, its cash flow, and your standard of living.
2. Health Care: If you get hit by a car and need life saving care you will be treated….but you need to familiarize yourself with the costs and the various options available to address this important factor (employee leasing, Health Saving accounts, health insurance etc etc etc). Your Business broker should be able to point you to resources and if they can’t..well best wonder a bit about that.
3. Professionals: Lawyers, Accountants, CPA’s (yes they are different from accountants), Business Brokers. As you navigate this process you are going to be scared. GET EDUCATED on the PROCESS in it’s entirety. Read the law regarding what visa you are attempting and take notes. Cross reference what you are told with what the facts are in the law (goto www.uscis.gov ) and read the specifics of the visa. Understand that there is a industry that has popped up based upon this process and as such there are folks there to help and folks there to take advantage. You are in a different country and the rules, laws, and customs for conduct are different here. Learn them and know who can advise on what and when they are speaking out of “scope” of practice. I.E . Business brokers are not lawyers and lawyers are not valuation experts or accountants.
1. Working Capital and Cash Flow: When an expat comes to the US they have not credit history and as such how businesses, landlords, vendors and in effect everyone (banks included) treat you are different. Bottom line you need a certain level of cash on hand in addition to the purchase price of a business. So if you tell me you have 100k USD in total….Im going to tell you that you don’t….its more like 70 to 75 depending on the business, its cash flow, and your standard of living.
2. Health Care: If you get hit by a car and need life saving care you will be treated….but you need to familiarize yourself with the costs and the various options available to address this important factor (employee leasing, Health Saving accounts, health insurance etc etc etc). Your Business broker should be able to point you to resources and if they can’t..well best wonder a bit about that.
3. Professionals: Lawyers, Accountants, CPA’s (yes they are different from accountants), Business Brokers. As you navigate this process you are going to be scared. GET EDUCATED on the PROCESS in it’s entirety. Read the law regarding what visa you are attempting and take notes. Cross reference what you are told with what the facts are in the law (goto www.uscis.gov ) and read the specifics of the visa. Understand that there is a industry that has popped up based upon this process and as such there are folks there to help and folks there to take advantage. You are in a different country and the rules, laws, and customs for conduct are different here. Learn them and know who can advise on what and when they are speaking out of “scope” of practice. I.E . Business brokers are not lawyers and lawyers are not valuation experts or accountants.
For more info on this topic contact me at 321-287-0349 and or email me at mike@tworld.com
Michael Shea PA
Board Certified Intermediary
3212870349
Board Certified Intermediary
3212870349
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