Buying a business in order to immigrate
The most common types of businesses sold for the purposes of immigration in Australia are retail, hospitality, wholesale, manufacturing and motel business with the majority of business owners immigrating from china (including mainland, Hongkong, and Taiwan) India and Southeast Asian countries.
Buying an existing business can be a great way for those looking to come to Australia to obtain a visa. There is a business visa 188A and 888A section. Meaning buying an existing business and running for about 2-3 years, the business owner or the applicant can get a PR.
It is a very good option for those business owners who are not qualified for other streams of visas like working visas, skill visas because of language or skill barriers.
In NSW, the applicant needs to spend around $500K in Sydney Metropolitans and $300K in regional areas including Wollongong and Newcastle. Considering the inflation during Covid-19, it is not expensive to immigrate to Sydney by purchasing a successful business.
What expertise does a business broker need to handle this type of sale?
You have to know immigration law details regarding the business visa, especially the details rules in your focused state because the different state has different rules on the nomination for a business visa, more than federal government rules.
Also, you have to know the customer needs behind the business and business visa. For instance, in order to sell a business to a prospective buyer, it is better if you can understand more about the buyer like cultural background, working or business experience, skill, personal characteristics, the reason why they immigrated to Australia and what they are looking for in their new life. They may suit different businesses because they are different people.
The re-opening of borders will bring back the customers and staff. Many businesses are suffering because of fewer customers and less staff. With the immigration come back, the sales will boom back with more customers and more quality staff.
Recent Success Story
I know a guy looking for a florist business for his wife early this year. I introduced to him a framing manufacturing business later on when I realized he is suitable for a bigger business himself. He has been running a travelling service business before Pandemic.
The business was quite affected, and he is not sure about his future. With this stable manufacturing business, he can feel settled and secure. The vendor has run the business for 30 years and is looking for retirement.
The vendor decided to stay with the buyer for one year transition period because he believes this time of period is very important for any buyer to take over the business smoothly. The needs from both sides made this deal happen.
They are all nice people, hardworking people, looking for stable returns and secured business. The buyer felt surprised to know how hard the vendor has been working during the transition period. That is the way the old generation business owners work, and I think that is the value should be appreciated.
About the author
Barton Cha moved to Sydney after his working in GE Medical China for 8 years and run his own business for another 8 years. He gained his experience in ...