You are wanting to invest in the US but may have some fears in starting from scratch. You might want to consider buying a company that already exists in the US. This has some pros and cons compared to starting your own business. Buying a company in the US is not as easy as you think. If you think you’re going to start a turnkey business, you may be wrong.
Consider Pros and Cons
There are many positive aspects to buying a functional company. For example, you would have security in a ready-made customer base, avoiding the costs of starting a new business and a team of employees who already know each other. You can start your business with direct cash flow thanks to the existing inventory and receivables. You can also apply for an investor visa by buying an active company.
There are, of course, negative aspects of buying an existing company. First of all, consider the possibility that the purchase fee may be higher than the cost of establishing a new company. Because this company already has a business concept, customer base, brand value, and other basic things. Also, make sure that you investigate possible problems with the company (e.g. company debts).
Deciding the Company to be Purchased
There are many potential companies that you can buy. To narrow down the list, you should ask yourself the following questions:
1 – What are my interests?
If you don’t have a clear idea of what you want to do, start by eliminating what you don’t want.
2 – What are my skills and what can I achieve?
Being honest about your experience skills helps you eliminate unrealistic business investments.
3 – What Are the Conditions I Am Looking for in a Business?
Pay attention to the unpleasant features of companies. (e.g. how meetings are run, the level of responsibility, etc.)
Do Your Research
Once you have found the company you want to buy, it is extremely important to have an unbiased investigation of the fair price required to buy that company. You should review other important files such as tax declarations, financial statements, employee files, contracts and so on.
It is good for you to get help from a legal attorney to examine them. You can also get support for financial records by an accountant.
Buying a Company
If you have decided to purchase a company, the “Sales Contract” is the document you need to complete the sale. This agreement identifies everything you intend to purchase; company assets, customer lists, intellectual property, etc. You can always contact us if you need help with buying a company.
Why Should I Buy an Existing Company?
Despite the fact that you have the option to create your own brand and grow a new company using your own strategies, buying a company that already exists in the sector has its advantages. When you buy a company, you also buy the company’s customer portfolio and recognition of that company. This, of course, increases the cost, but considering the long-term return, it is clear that it is not an impaired investment.
You can also benefit from investor visas by purchasing a company that has been operating in the sector for a certain period. For example; A company that you buy for $100,000 or more will give you the chance to apply for an E-2 visa.
If you have any further questions, please do not hesitate to contact us via [email protected]. You can also reach us at +1 (302) 803-9501. We are always glad to help you!
