Buying a Business? What I Recommend Foreign Buyers to Do

Many foreign nationals come to Central Florida tobroker the transaction.
purchase a business in order to get visas into the3. Get good financial advice from accountants or
US on a somewhat permanent basis -- so long asCPA's. By the way, normally one of the
the business is viable, the visa holder may stay, ifrequirements for the visa is a five (5) year
not, they may have to get back to their countrybusiness plan.
of origin. The two most common types of visas4. Buy a business which has solid financial records.
are the L1 and E2 visas.Audited Financial statements and tax returns and
The L1 visa is normally available to foreignnormally good when dealing with US immigration.
business owners who wish to acquire a business in5. Please do not buy "cheap," buy good. It is
the U.S. and assign a person -- on anbetter to pay more for an enterprise that has
inter-company transfer-to manage the enterprise.long term potential than not. Remember, after a
The person managing the U.S. enterprise gets thecouple of years you will have to renew your visa
L1 visa. The good news is that normally the L1and the financial results of your company may
visa can be converted into a green card withindetermine whether or not you stay in the
two to three years.country.
The E2 category of US visas is normally given to6. Perform a very detailed Due Diligence. Your
foreign nationals who have bought a company invisa depends on it!! The due diligence will help you
the US and wish to manage it. To qualify, youdetermine the viability of the business and verify
must be a national of a country that maintains athat what you bought is what you are going to
treaty with the United States. Additionally, theget.
foreign national needs to make a "substantial and7. Do not spend it all on the business acquisition;
non-marginal investment of no less thanyou may need more to run your investment.
$100,000." However, size and nature of the8. Understand your life style expense
business may also be determining factors. I haverequirements and buy an enterprise which
sold and heard of many businesses being sold forsupports it.
E2 reasons which do reach the $100K plateau.9. Buy a very simple Business Model-they normally
Please understand that the above aresucceed.
generalizations and that you need to know more.10. Talk to other foreign nationals with E2/L1
However, now that I mentioned the types ofvisas. Understand their successes and struggles.
visas, let me make some recommendations toBuying a business can be stressful enough without
foreign buyers.combining it with a transition to a different
1. Get proper legal (immigration) advice.country. Please follow these recommendations and
2. Get an ethical and reputable Business Broker toyour stress would certainly diminish significantly.