There is no real reason to consider that selling to a foreign investor is any different to a local or cross-country sale. When you have declared that you will ‘sell my business,’ you can choose who you wish to sell to and hopefully achieve the best possible valuation.
Foreign Complications
There are several formalities which will be raised by the immigration service. They will need to ensure that the relevant visas are in place so that the individual can make the substantial investment. Should the owner choose to wish to live in the US and work within the business, they will need to accomplish the necessary visa status.
This is not necessarily a complication for you to be worried about, but you should make your lawyers aware that the purchaser is an individual from overseas. Then you will need to ensure that all the necessary documentation is in place before the deal can complete. This may, of course, delay the outcome.
If I were to sell my business to a foreign investor, I should not be worried about their decision-making process and the plans they have for your business. Nevertheless, you may worry that your employee’s positions may be at risk and for that reason, you may refuse a higher bid from a foreign investor, in favor of a slightly lower bid from local competition.
To sell my business I would ensure that the agreement and purchase price is listed in US dollars and that you will expect all and final payment to be received in US dollars and not in a foreign currency, which may fluctuate in its valuation against the US dollar.
A foreign investor making a substantial investment in a US business will require a specific Visa to be able to work and manage the operation. This does provide them with the opportunity to apply for permanent residency Visa within a relatively short period.
