E2 Business Visa for Sale – Florida, California, Texas & More!
Learn about attractive industries, costs to buy a business and more Visa Franchise News with Patrick Findaro!
Written by
Carolina Iness
Published on
17 Feb 2022
Table of Contents:
This article is based on a video originally recorded on our Visa Franchise YouTube Channel.
Hello, Patrick Findaro here. I just wanted to give you an update on those that are seeking an E2 business visa for sale. We’ve had a lot of clients over the years buying franchises that are basically resales. That would be when there’s an existing franchise where the owner is either going back to their corporate work, or moving towns, or retiring. And because of that, they’re selling the business.
Our clients mostly have bought those franchises resells as an asset purchase to avoid taking on any potential tax liabilities, litigation, etc.
E2 Business Visa for Sale
That’s why, instead of actually buying the entity, they buy the asset. That’s typically how most people are structuring existing business sales in the United States. Given that it’s 2020, with the pandemic still being very much of a thing, and the promising hopes of the vaccine coming out, there have been a lot of business opportunities listed. Especially in states like Florida, Texas, California, and New York.
There are a lot of interesting opportunities. In particular, in industries that their focus is on home services or on delivering takeout (which are really increasing a lot).
There are some industries that have done very well and even have done better than in 2019.
For example, if you have a pool servicing company and people are spending a lot more time at home, they are probably making more use of the pool. Another example is if you have kitchen and bath remodeling business, and people are refurbishing their kitchens and making an extra… reorganizing their house and maybe working out of their kitchen event.
There is a lot of spending happening in certain industries in the United States, which means there are attractive opportunities going on.
The Lion’s Share of Businesses for Sale
The lion’s share of businesses for sale, generally when the owner thinks that their business is worth a lot more than it is. Then, we tend to see businesses for sale, say less than $500,000 at a multiple of 2 to 4 times earnings, depending on the industry. As well as how actively involved the owner is in the business.
There are other interesting industries such as real estate property management, landscaping, small accounting practices. Those are very sticky and have recurring revenue, where it’s generally not a multiple of how much you’re earning from the business, but a multiple of sales.
Then, if you’re looking to buy, for example, a property management business in Florida or Southern California, it might be 1 times revenue, 0.8 to 1.2 times revenue. That’s why, if a property manager is managing 100 single-family homes and has a business that they’re making $500,000 a year, it might cost you $500,000 to acquire that business. And there are all different ways to structure the business sale.
It’s really important that you have an attorney with experience, with a lot of business purchases and business transactions. You should have a competent accountant as well, to make sure that it’s a structured complaint from a fiscal perspective.
With any type of tax planning needs that you might need, you should work together with the accountant, the business broker, and the attorney. This will ensure that you have as smooth a transaction as possible when you’re buying an existing business.
If you liked this content, subscribe to our Visa Franchise YouTube channel. If you are interested in knowing more about the different businesses for sale, you can visit our sister website, Vetted Biz. This is Patrick Findaro. Thank you for watching!
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