Establishing Business Valuations for Company Acquisitions
| US Business Visas for Entrepreneurs
By Isaul Verdin, VERDIN Founder and Managing Partner
When E2 visa entrepreneurs are planning to acquire an existing business, they must consider that USCIS (US Citizenship and Immigration Services) will factor the valuation of the business in the investment analysis.
One advantage to buying an established and profitable business is that it will be easier to prove company viability and valuation. If the potential business acquisition hires U.S. workers and has a profitable track record of two or more years – then proving the business valuation is less complex.
Three Ways to Establish the Business Valuation of an Acquired Business
1. Argue that the purchase-sale agreement establishes the fair market value of the business. Using this method, the E2 visa applicant can submit evidence of comparable deals in the market to establish a range of fair market value for the type of business in the industry in the local market.
2. Present a Certified Public Accountant (“CPA”) letter. Ideally, the CPA letter can reference how the parties established the value of the acquired business. One common method is to establish a formula based on multiples of cash flow.
3. Present tax returns and financial statements from the seller of the existing business. The U.S. government will review the seller’s business tax returns to analyze assets. The value of the business assets is also helpful in determining the value of the business.
General Eligibility for E-2 Visa Classification
From USCIS, E Visas
To qualify for E-2 classification, the general requirements for a foreign entrepreneur are:
- You are a national of a country with which the United States maintains a treaty of commerce and navigation;
- You have invested, or are actively in the process of investing, a substantial amount of capital in a bona fide enterprise in the United States
- The capital invested must not be marginal;
- You are seeking to enter the United States solely to develop and direct the investment enterprise.
- See the USCIS E-2 Treaty Investors for more information.
- For more info, see E2 Visa Tips – How Much Capital is Required?
VERDIN Immigration Law – E Visa Business Solutions, Dallas TX
VERDIN’s business and investor group provides help to clients wanting to establish and/or expand their business operations in the United States. We have helped clients in multiple industries to include: international trade, real estate, restaurants and hospitality, technology, beauty and fashion, retail and services.
VERDIN represents clients in business planning and E visa matters involving real estate ventures, technology start-ups, business acquisitions, or new business formations. See E2 Investment Visa Potential Booming in Frisco TX Area.
Our team is especially focused on forming a strategic relationship with our clients to aid them to succeed in the early planning stages. Many of our clients retain us at early stage planning to maximize opportunities for success.
E2 Visa Questions? Please Contact VERDIN Law
Isaul Verdin has extensive experience advising multinational companies and entrepreneurs on complex US immigration matters involving investments.
Mr. Verdin focuses on advising companies on structuring entities, acquisitions, and strategic expansion to satisfy US immigration E-1, E2, L1A, L1B, or EB-1 objectives in a variety of fields. These business opportunities include real estate, aviation, technology, manufacturing, retail, luxury goods, and professional services. Additionally, he litigates deportation defense matters throughout the US.
VERDIN boasts a combined 70 years of experience in immigration law. Since its inception, VERDIN has gained a reputation for prevailing in even the most complicated immigration matters.
“As a Board Certified, Immigration Lawyer (Texas Board of Legal Specialization) with over 17 years of experience, my passion is immigration law. We will listen to your concerns, answer all your questions, and expertly guide you through your immigration process.” ~ Isaul Verdin, Founder and Managing Attorney
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