Many British people have been extremely successful in operating businesses in America; they are very happy, have done a lot better than had been the case in Britain and have truly discovered the land of opportunity. On the flip side there are some who have found things very different, struggled and lost money. All too often you are not given all the essential facts of a business, as it is taken for granted that you have the same knowledge as an American buyer would have.
It is imperative to find a good business broker. Unfortunately as is life there are a number of individuals and companies both in Britain and America, waiting for the opportunity to take advantage of your American dream and sell you a business that is not what it first seems.
Smooth talking, glossy brochures and a few unrealistic examples of businesses for sale are not a guarantee that you are being given all the correct and relevant facts and figures. I have seen evidence of some irresponsible and downright dishonest individuals whilst here and the heartache they cause. Always be skeptical, and always make certain the financial accounts you examine are the ones used for tax records.
For example I know of British clients who purchased a perfectly good business and needed to register the employees' liability and health insurance under their own names for the business. As they were newly arrived in the USA, with no American track record, the premiums were substantially increased. Indeed it took a few weeks of sorting out before coverage could even be obtained without which they could not employ staff. In another case involving a franchise operation, not only were there three sets of books, but the specific franchise operation the clients were shown was totally dependent on a different branch of the franchise a few miles away!
What criteria does the business need to satisfy for a visa to be granted?
The business needs to satisfy the American government agency who will determine if it meets all the necessary criteria to grant you the necessary visas, if they do not all your time, effort and money will be wasted. The agency will consider the merits of each business in relation to whether it complies with any requirements to employ American staff and whether it can provide enough income to more than economically provide for you and your family. Every business will have slightly different variables.
The business must be able to provide you with the income and future potential to meet your American aspirations. It is therefore desirable to work closely with a specialist business broker in the area of your choice to obtain a detailed, in depth picture of the business.
However much you succeeded in Britain it is important to bear in mind that despite the common language, America is a very different kettle of fish. Certain British business practices will not automatically work in America; however, other aspects of British business practice can give you an inbuilt advantage in the American market. Again it is important to take advice on this.
What is involved in the process of buying a business?
The majority of business purchases in Florida are handled through business brokers who are registered with the Florida Real Estate commission. Brokers are usually registered with the Florida Real Estate Commission.
The various implications to consider when searching for a Broker are;-
Who is the Broker representing in a transaction, you as the buyer, the seller or as a middleman or are you looking at a franchise operation?
Has the Broker expertise in the area you are looking to settle in? Local knowledge is all-important in terms of business trends and a broker operating from say Miami or Orlando if you are considering a business in Sarasota requires careful consideration.
Do they have in depth knowledge of the local business climate, is the area of business up and coming, is there market saturation in the area for that type of business? Have you been sent in depth analysis of economic trends in the area from the Chamber of Commerce?
How much time is the Broker prepared to spend with you?
Changing your life, moving to a foreign country and sinking your savings into a new business is both nerve wracking and time consuming. Unfortunately its all to easy to come across less desirable individuals who will spend the time but are not always on the straight and narrow, equally I have come across excellent Brokers who due to the success of their Brokerages have neither the time or inclination to take you through slowly, step by step all the process.
Your Broker, Accountant, Attorney will need to offer advise on review of the records to determine current ownership and legal standing of the business, whether the business has any outstanding loans, debts or a particular problem in Florida liens.
It is necessary to review the list of equipment, leases and warranties given by the seller?
Sometimes the owner of a business may be wary of disclosing all the financial information for the perfectly good reason that whilst the business remains in his ownership he does not such confidential information being made available to competitors. This is another area where the services of a good Broker are important, as the process - called due diligence (examining the business in depth) is imperative to ensure if the proposed purchase should be undertaken.
After several years of research and checking data we have discovered a Business Broker with an excellent track record of identifying suitable businesses for those looking to use the E2 and L1 visa routes.
