Selling to the Foreign Investor

by Tom West

Now that the world is a global village, many business owners are beginning to think foreign when they make the decision to sell. And why not? Foreign buyers are making a major impact on the American independent business scene, with every indication that they will continue to be aggressive purchasers.

However, sellers of the small to midsized business should be aware that foreign-buyer status raises issues with the U.S. Immigration and Naturalization Service.

The following is a look at the U.S. visa system as it applies to the acquisition of a business by the non-national buyer:

E-2 Visa. This is a non-immigrant, long-term, temporary visa, issued to a person who makes a substantial investment in an enterprise that is active (“not marginal”) and that the foreign buyer will direct and manage.

“Substantial investment” is not defined by a minimum amount. Read the rest of this article→