Benefits Of Buying Business
- Risk mitigation
- Established operations
- Immigration into the USA
Buying business vs. launching a start-up drastically reduces uncertainties. Established business already has a clientele and revenue. Unlike start-up, it generates cash flow from the very first day of ownership. Start-up can have dry pipelines for a very long time.
Established business has ongoing operations, which means you already have a staff, which trained to do their job. You already have established relations with vendors. You already have all equipment installed and all premises rented.
For international investors buying a business can be an instrumental for immigration in to the United States. There are several investors visa. Some of them (like EB-5) have explicit requirements of size of investment. Others (like L-1A) does not.
In any case immigration can go much smoother, if one already has a business running and steady cash-flow from its operations.
Process Of Buying Business
Each deal is unique, and there is no uniform scenarios. Nevertheless, there are some basic steps in acquisition of a business:
- Initial interview with Business Development Advocates where the Buyer’s preferences are established.
- We select appropriate offerings, and present them to the Buyer.
- Buyer signs Non Disclose Agreement for selected properties.
- We make an appointment with the Seller, and make initial business evaluation with the Buyer.
- If Buyer is satisfied with the initial review, then he extends an offer.
- Seller replies with counter-offer, or accepts one. That created a binding contract.
- Buyer puts a deposit on escrow account (usually 10% of agreed price).
- Buyer conducts due diligence. In case if serious discrepancies are found, the deal is off, and deposit returns to the Buyer.
- When due diligence is over the Buyer puts to the escrow the reaming amount, and the deal is closed.
It is difficult to overstate how important to have a professional support during this complex and potentially cumbersome process. Call us for a preliminary interview, and we will discuss how we can satisfy you needs.