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How can we sell a business to an EB-5 investor?

We own a fitness center and just launched a wellness franchise. We want to sell the company. We have an EB-5 investor who is interested in purchasing it and support his visa application. How should we proceed with this deal?

Answers

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    It is much more complicated selling an existing business because you have to create new jobs. The key is to retain an expert who can help you structure the deal so that it is compliant. Selling the franchise is much easier since that will show by investing you in creating new jobs. if the fitness business is a troubled business in that it is losing money, and we can show 10 full-time jobs will be saved, that could be another option. Kind Regards, Bernard Wolfsdorf Managing Partner Certified Immigration Law Specialist, California State Bar

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    Stephen Berman

    Immigration Attorney
    Answered on

    The investor needs an attorney to help. You just need to sell it.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Among other requirements, the business must have been established after Nov. 26, 1990 and must be able to create 10 new full-time positions for U.S. workers, unless it is a troubled business. The EB-5 investor will not be able to take credit for jobs already created by this business. In any sale, both sides should be represented by legal counsel. In this case, the EB-5 investor also needs an experienced immigration attorney to advise on the requirements of the immigrant investor law.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    An EB-5 attorney will be absolutely necessary to determine that the investor''s purchase meets the requirements of EB-5. We would look at the age of the business, what is being purchased and how 10 jobs can be created via the purchase. I often work closely with business brokers to facilitate foreign investor purchases for EB-5, E-2, and L-1 processes.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    This is not unusual, however, there should be a detailed business plan by the investor working hand in hand with sellers. The business plan must demonstrate that the company will meet the EB-5 requirements. Since this involves a direct investment situation, make sure you do a succinct and good job with the EB-5 attorney.

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    Belma Demirovic Chinchoy

    Immigration Attorney
    Answered on

    You should proceed as you would with any business sale plus add an EB-5 attorney into the mix of professionals that will guide you in the process.

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    Dale Schwartz

    Immigration Attorney
    Answered on

    Has the business been profitable or suffered a loss over the past 2 years (per tax returns). How many employees there now? If the new owner had to hire 10 more full-time employees over the next 2 years?

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