Do you want to have a business operating in the US but are you afraid of all the hassle during the formation process? This initial phase in which you basically start from scratch can be indeed burdensome. Therefore, as an alternative, you can instead consider buying an existing company in the U.S. Of course, this situation has its own pros and cons. We have made a small list that might be helpful in this endeavor.
Pros and Cons
Buying an existing company has a lot of pros. For example, you will already have an existing customer group, a team in which people know each other and also you will avoid expenses of starting a whole new business. You start doing your business with cash flow thanks to current inventory and receivables. Moreover, when you buy an existing company with a price of $100,000 or more, you can also apply for E-2 Investor Visa.
Buying an existing company also has its cons. Primarily, the cost of buying a company can be more than starting a new one since this business already has its business concept, customer background, brand value and fundamentals.
Choosing the right Company
There are lots of business types you can consider acquiring. To narrow the list, you should ask yourself these questions:
- What are my fields of interest?
- What are my skills?
- What are the conditions I want to see in a company?
Do Your Research
After finding the business, you should make in-depth and objective research to see the fair price of this company. You should review documents such as financial notices, tax returns, employee files, and agreements.
It’s a good idea to get help from an attorney in this step. An accountant can also help you with financial records.
Buying the Company
If you think you are ready to buy the company, you should prepare a sales agreement. This agreement describes everything you intend to buy; business assets, customer lists and intellectual property… Please contact us to get help with the sales agreement.
Closing the Company
The last ring of the chain is to close the company. Of course, you need to get professional consultancy about this. Please contact us if you think buying a company is a better option for you.