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Benefits Of Buying Business

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

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:

  1. Initial interview with Business Development Advocates where the Buyer’s preferences are established.
  2. We select appropriate offerings, and present them to the Buyer.
  3. Buyer signs Non Disclose Agreement for selected properties.
  4. We make an appointment with the Seller, and make initial business evaluation with the Buyer.
  5. If Buyer is satisfied with the initial review, then he extends an offer.
  6. Seller replies with counter-offer, or accepts one. That created a binding contract.
  7. Buyer puts a deposit on escrow account (usually 10% of agreed price).
  8. Buyer conducts due diligence. In case if serious discrepancies are found, the deal is off, and deposit returns to the Buyer.
  9. 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.