Sarasota immigration attorneys often work with immigrant investors and entrepreneurs who want to live and work and grow a business in the United States. Two of the strategies we recommend pursuing involve the E-2 and EB-5 investor visas. E-2 investor visas are popular with immigrants as a way to quailfy for residence based on an immigrant’s entrepreneuerialism. Immigrant investors qualify by investing a substantial amount in a new or existing enterprise that is real and active and will either produce more than a living wage for the investor and his/her family or will make a significant economic contribution through job creation. The visa often allows an investor to stay in the US for 2 to 5 years and is renewable. The E-2 visa can ultimately lead to an EB-5 green card if the investor invests $500,000 to $1 million and creates 10 new full time jobs. For more information on E-2 and EB-5 investor visas and their requirements please watch our latest video on the subject.
Large Business for Sale
As stated above, immigrant investors qualify for an E-2 Visa by investing a substantial amount in a new or existing enterprise. While we are not in the business of recommending enterprises to potential E-2 investors, we know many business brokers who are. Recently we heard from Tony Dempsey of Sunstate Business Brokers about a business he recently listed for sale that may help an immigrant investor qualify for an E-2 visa.
Mr. Dempsey reports that the business is a physical therapy clinic in a desirable location. Growth has been and continues to be outstanding, as has profitability. The owner has created a unique and dynamic business model with a diverse approach to securing multiple patient referral sources, large and diverse service offerings, bilingual staff, classes and clinics provided, revolutionary FDA approved technology, in addition to DME sales and a weight management program; all this coupled with first class billing and administrative systems. Part of the attractiveness of this business as a potential acquisition is the fact that the owner is no longer involved in the day to day running of the business; that being left to management and the other therapists. The owners currently spend much of their time out of state and will be moving westward to be close to their family and start another physical therapy clinic there.
The asking price is $999,000. Gross revenues: $1,184,518. Cash flow: $360,172. The business comes with $10,000 in inventory and $110,000 in furniture, fixtures, and equipment included. The clinic was established in 2005, and has 15 employees. It is located in a 2950 sq foot modern facility on a major traffic artery. Rent is $3200/month.
E-2 or EB-5?
Our assessment is that this investment opportunity could be an option for someone looking for an E-2, L-1 or EB-1 visa. But, this would not work for an EB-5 because the regulations normally require the creation of 10 new full time jobs. The only way it could work for an EB-5 would be:
- If the business has a substantial loss for one out of the past 2 years (in which case, the EB-5 investor can qualify if it preserves 10 FT jobs) OR
- The EB-5 investor creates 10 additional FT jobs within 2 years.
Small Business for Sale
Mr. Dempsey also shared a second, smaller business prospectus with us. He reports that a well established Franchise would provide the new owner with a repetitive revenue stream from the constant reordering of a highly consumable product in a Business to Business environment. This coupled with a productive retail/production facility captures additional revenues from the consumer marketplace. The owner is highly motivated and will offer financing for a financially qualified buyer.
This is an established local franchise store, one of 1600 franchised retail locations in 50 countries, that originally focused on the refill and remanufacture of ink and toner cartridges for printers, but which has now expanded to include an array of related services supporting home and office printer users. This includes offering HP and Canon printers for sale, which makes a perfect complement to the printer cartridges they offer. In fact, for more than 20 years the franchises have been not only perfecting the art of remanufacturing printer cartridges, but also providing world-class customer support for hundreds of new printer products. This local franchise services virtually any item that serves a printing function, including fax machines, postage meters, photocopiers and more. Their focus is on Business-to-Business but also service the end user retail market with a 100% guarantee on their OEM remanufactured ink and toner cartridges and special promotions throughout the year. They pick up and deliver in a 3 county area.
With $332,321 in gross income, 20,000 in inventory, and 2 employees, the asking price is $150,000.
Qualify for an E-2?
We urge investors to be aware that this business may not by itself help an investor qualify for an E-2 visa. However, it could be part of a successful strategy that includes other businesses or an expansion plan to open new locations. For any questions about these businesses please contact Tony Dempsey at Sunstate Business Brokers: 941-932-5512. For more information on how to qualify for an E-2 or EB-5 investor visa, please feel free to contact us: 941-366-9841.