Procurement of businesses

  • Pre-sale preparation
  • Sale to a client
  • Management

How is a business procured? With a thorough check-up. Our clients like it when we earn money for them (and ourselves), by managing their American companies. Studying the subject of sale, one or another company, we first of all assess how much we will earn from it by managing the business. At average profitability of 15-20% within 2-3 years, we earn several times more than from the percentage of sale. Searching for a company in the USA just with the view to selling it is interesting only for those who make their earnings from companies selling. We earn from the sales of goods and services of the companies managed by us. Gaining profit for our clients is what we manage best.

While studying the business, which we could offer to our clients, we thoroughly survey the business marketing, financial indices, legal burdens - but not the Russian purchaser, as it is us who will run this business. He is interested in the income gained by us, but not in “how it all works”.

Our requirements towards the business offered for sale are rather simple:

  • Reliability of financial indices
  • Clear understanding of legal burdens (licenses, rent terms, etc.)
  • The rest depends upon the business specific features

Peculiarities of former proprietors’ marketing are not of any concern to us. Reliability of financial indices is of much greater importance for us - far from all the American businessmen expose all their expenses and all their incomes. Off-the-books cash wanders about American companies rather freely and “Russian” businessmen especially admire off-the-books cash.

As far as legal burdens are concerned, any firm of attorneys will check any USA company for a certain amount. Some attorneys even issue a document, which will mention that “monitoring was completed with the view to legal burden”… “this and that was found” or “none of the kind was found”. But that does not make guarantee that there are no burdens, they were just not found. Besides, monitoring was done as on 1st November, and the suits for 15 million dollars are dated 3rd November.

Therefore, while procuring a company for you, as a rule, a new legal person (new corporation) is created, to which balance all the assets are entered. A newly created corporation is fresh in body and pure in soul, as well as its proprietor, i.e. you.

1. Selection of a Correct and Profitable Business - is the Most Important Step in Business-immigration.

Your Green Card depends 100% upon that. The best lawyer will not be able to help you if your business went bankrupt within a year or is suffering losses.

Some of our clients think that procurement of a business is not a problem. We agree with that completely. The problem is - what to do with it further on? Newspapers and internet are full of announcements about sale of business. Why? Is it possible that businessmen having successful and profitable business are in a hurry to give it away? They will indicate to you a dozen of relevant reasons for selling this business. From “urgent need” of money to “we are moving to a different state”. But almost never actual reasons will be mentioned.

However, you will find them out for sure, but… when this business becomes already yours. You are lucky if it turns out to be something like “spouses-proprietors of that business got divorced and decided to sell the joint business”. Much worse, if the actual reason will turn out to be the fact that the rent period of the restaurant premises is expiring in 7 months, and a new contract of tenancy will not be signed as the owners of the building decided to demolish it, or a highway will run in this place in accordance with city development plan. Of course, you can take a risk as people win the roulette as well. Just do not forget: in the pot of the game - are your green card, your present and your future.

You can use the services of a business-broker. These are specialists in business sales. They will select you a variety of options in accordance with your wishes. Only one “but”- their task is to sell the business to you. They are sellers. As such, business-brokers get a percentage of the deal. The more expensive he sells the business to you, the higher his commission is. It works the same way as with the sale of houses, furniture, vehicles. Business-broker is first of all a seller and you are the purchaser.

Business-brokers - are wonderful people, who will always find a business for you. Is it possible to purchase a good business through a business broker? Yes, it is. But whether it is good - you will find out 2-3 weeks later after the purchase. So your Green Card remains in the pot of the same roulette. The probability of procurement of a good business through a business-broker is much higher than through newspaper or Internet. But it is much lower than you require.

Unlike business-brokers, we do not earn on the sale of business to you. Our task - is to find a stable, steady business for you. We are your representative, but not of the seller. Why do we think that we will find a more successful business for you than you will find through a newspaper or a business-broker? Everything is simple. If you go to buy a second-hand car, a clever person, being not an expert in vehicles, takes an experienced specialist with him - an auto-mechanic. We do not consider ourselves experts in all types of business - that is impossible. But we select a consultant possessing appropriate experience and qualification in a particular business in a city you choose in the USA.

This consultant has worked for many years in this district. He knows the businesses’ owners. He knows how and what they live by. He knows which businesses are successful and which are not. He possesses the insider’s information. He will help you to ask correct questions, to get the idea of the actual situation in this business and its realistic price. He will be your pilot and your map.

If the business offered for sale does not meet our requirements and we see that we are capable of “raising” this business - we offer this business for sale among our clients.

Then comes the survey of the purchaser. All that can be studied, being in Russia, is studied. We even furnish the addresses and phone numbers of auditing companies which are ready to help with checking the company being sold. Then, comes the voyage of the Purchaser for presentation of the company in the USA - visas are arranged, a hotel is booked, a cell phone in the USA is issued not to loose operative communication with the Motherland.

Furthermore, the most detailed business plan, marketing plan, media plan (if required) are made out, a marketing agency corresponding to the field of business is selected, we start selecting managers with proper experience to whom it will be possible to entrust the management of that business (in order to introduce them to the clients as far as possible).

All the steps are described in more detail in the “Business procurement” chapter.

At the same time we furnish the addresses of sites where different companies in the USA are offered for sale. Having seen enough of hundreds of extremely draggy USA enterprises, the purchaser becomes more favorable to us. Compare any of our offers with the offers in www.businessesforsale.com, www.bizbuysell.com, www.bizquest.com and dozens of other sites. Well, how was it? Which of them will bring you 30,000 - 120,000 thousand income monthly?

In order to ensure continuity, we try to at least partially keep the same team, which has been working in business for at least 3-6 months, ensuring trouble-free take-over of business by a new proprietor without major losses of clientele and servicing level.

Furthermore, we define the terms of our reference in respect of the company management, reporting to the client, green card arrangement procedure, co-operational sequence for acquisition of double citizenship. Usually, while we are trying to clear up the issues of further business development, the clients are persistently looking through USA West-Coast real estate catalogue, automobile sales centers booklets, and ask dozens of questions about a college for children and in which ATMs in Russia it is possible to withdraw cash from an account in USA. Before returning to Russia, it has become a good tradition to open a personal account in the biggest banks of the USA - Bank of America, Wells Fargo, Citibank and others. Funds from Russia and Switzerland plus American company’s incomes are transferred to the personal account in USA. Believe us, some “very modest people” in Russia have very immodest accounts in the USA. Their families are grateful to them.

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