Emigration to Australia and business purchase.
Emigration to Australia and business purchase.
The businessmen thinking of emigration to Australia, often have a question – whether gives something business purchase for a visa priobretniya to Australia or for emigration to Australia? On this question the answer of some experts of the emigratory legislation can negatively sound that the pier of direct link of purchase of business and the visa is not present, meaning that only fact of acquisition does not provide to you the visa or emigration.
We would like to disagree with such rectilinear statement as are deeply convinced that for the Russian businessman who have intention to emigrate to Australia on one of categories business of visas and not having prior to the beginning of procedure of emigration of strongly established business in this country, i.e. stable export on the stable importer in Russia but only ambitiously dreaming on arrival "to stir up a subject", purchase of business could become a core of the program of emigration, and also a basis of disease process of assimilation in the new country.
Expecting objections of opponents and losers with business purchase, we will add that what business and as it to buy is and there is a question essence, without having solved which opponent and the loser are ready to reject idea in principle and, in addition, to accuse the adviser, business of the broker, the owner of business, Australia, the destiny and all all the rest, except itself.
To it we will return below for now we will continue about communication of purchase of business with emigration. It is known that according to the immigration legislation of Australia, the person concerning business, can emigrate as a direct way according to visas of subclasses 127, 128, 129, 130 and 131, at once having received the status of the permanent resident, and through temporary business the visa of 457 (Business Long Stay) with the subsequent transition to the status of the permanent resident according to visas 840, 841, 842, 843, 844, 845 or 846. In the first case, all business emigrants, except for investors (131), sign the declaration on the true intentions on arrival to take part in business in Australia. In the second – it is not enough one declarations on intentions, and it is necessary to execute a certain financial performance of your business in Australia. Otherwise, upon termination of term of the 457th visa the unsuccessful businessman will be compelled to leave the country, even at his intentions to begin everything since the beginning and аппелировать for new term of the 457th visa which receiving practically will have less chances in comparison with the first attempt when fervent business of the plan and the pieces of paper confirming existence of finance, was enough.
Purchase of ready operating business or share of business could solve a problem, as they say, on a root, having provided to the potential emigrant and history ready business, both a demanded turn, and demanded net assets, and the demanded minimum number of the employed citizens of Australia, and that is important, the income on a daily bread. The situation when upon the correct purchase practically in a year after receiving the 457th it is possible to submit a residence on a constant place, looks where it is more attractive, than four-year efforts to pull financial performance to the necessary level which also ended at all how you assumed, and even carefully counted. As to the bases for receiving most the 457th as independent executive, purchase of business could cover the following factors which influence decision-making by emigration department on this category of the visa: validity of intentions; communication with Australia; existence of sufficient assets (purchase of business can help уменьшиьть the sum of demanded assets of AU$250,000 – one of the main criteria of this visa); business plan; intention to operate business; advantage activity business for Australia.
For the direct emigrants, those happy owners of visas with the 127th on 131st which at once received a constant place a residence, having managed to prove to Australia successful business career in the past, and with impatience issue of the Australian passport in two years expect, the situation looks not so tensely. In spite of the fact that in 1999 the happiness of 60 owners of aforementioned visas was omrachneno to decrees of the Minister of immigration about cancellation of the visa and deportation from the country for not shown intentions to be engaged in business as by them it was declared, from immigration Department for owners of such visas and their business by activity it is impossible to call control rigid. Rather really manifestations of intentions without any obligations from the point of view of intensity and size of the enclosed capital, and any your failures will be met with understanding, and obtaining nationality in two years is almost guaranteed. Nevertheless, if you the businessman with an experience, with habits to the certain standard of living, convinced that working for someone rich you will not be, справедиво not believing in capitalist promotion, it is possible what to grow rich on wearisome and long economy, your way – business or, at least, small бизнесок. And in this regard purchase of business of c by the established niche in the market would be quite reasonable alternative of the organization of the new enterprise with foggy plans will squeeze into very close ranks of the developed economy.
So, purchase of business and its communication with immigration any more question. And here what business? How to buy? How to keep it and to increase? It really QUESTIONS! Here about it we also will talk.
It is not necessary to possess a superior intelligence and even small, what with unreasonable purchase to make happy the seller, the broker, the lend-lord and the state, i.e. all except itself.
To leave after the transaction happy and to remain that for many years forward, except certainly good luck, it is recommended to have the minimum knowledge and skills in an independent assessment of business, and also to involve experts from outside for consultations. And than your knowledge and experience is higher, subjects of the best adviser you can find to yourselves and, respectively, receive more qualified recommendations.
In addition to this article the translations of three small articles from local sources of information on the subject of business purchase in Australia, (BUSINESS PURCHASE IN AUSTRALIA By Graham Nankivell are offered
BUSINESS PURCHASE In the 90th By John Jacob
INSTRUCTION FOR B.E.C BUYING BUSINESS. State& Regional
Development New South Wales) which we urgently recommend to read and be guided in the researches of the market and business purchase. In addition to these articles below we will try to express our some thoughts which have been given rise on the basis of our experience, experience of our familiar businessmen here, and also some information which, we very much hope, will be useful, especially if you at the beginning of a way.
Purchase of business, especially small which is so small that is not enough turn of finance and organization level for hiring of the manager, often represent in the form of a cage with a birdie inside and the second birdie outside where the cage is numerous obligations of the businessman on daily maintenance of survivability of the business, and one of the heaviest – payment a rent. The birdie in a cage is a seller of business, full from freedom in decision-making and being torn to freedom from obligations. The birdie outside is a buyer, absolutely free and, owing to the ordinary of such condition not realizing it, and being torn to freedom in adoption of commercial decisions. Change of birdies by places is a procedure of signing of the purchase and sale contract of business and contract signing a tenancy (Lease Agreement). So sad analogy does not take place, when the owner of business obtains worthy reward in the form of the profit rest for the capital invested by it, heavy work, risk and sleepless nights. When it not so, aforementioned condition of the seller in very and very frequent cases gives the chance to the buyer to get dorogostyashchy assets in the form of business purchase for amazingly low price, sometimes simply for the song. Whether also it is very telling argument in debate to buy ready business or to organize the new.
The main criterion of estimation of cost of business – return on the enclosed capital. And if the zero, the price gives business to business – a zero, irrespective of the previous capital investments and efforts of the owner, irrespective of a financial turn of business – it is not worth a red cent for a turn if it all goes to expenses, irrespective of arguments of the seller about opening prospects – why it did not realize them? Numerous examples to that is it restaurants about cost of the equipment and room repair under one million dollars, and costing on sale at the price of 20-40 thousand dollars, these are the Internet companies which have disappointed hopes of million investors, having mixed concepts of business with a means of communication and advertizing, and not being exposed not on sale due to the lack of real assets. And remember the telephone company "Iridium" for which "Motorolla" together with other investors spent 6 billion dollars and 10 years of development, you could buy it last year for one dollar, at such price it was on sale together with all its 66 satellites in orbits, but also certainly with expenses 3 million a day on maintenance.
Real profit today, your expectations of prospects of business and the finance necessary for receiving this profit and realization of prospects is a basis for calculation of that sum which you are ready to pay for business or фрэнчайз.
Spread out the expected income to three levels: return from work; return from financial operation; profit, i.e. return on risk.
Count capital return on your enclosed work, i.e. how many you would pay to another for that work which will do Bы in this business, or how many Bы would receive, working for someone, on an annual basis. Count, how many Bы would receive annual, invest you this money in the low-brave investment cop – i.e. the bank deposit or the state bond. Take away the sum of these two calculations from the declared profit of sold business and express it in percentage of the enclosed capital – business costs. It also will be an award for your risk. It can be from 5 % to 20 % depending on business type. Professional service is at top of a rating and 20 % of return can be expected. The services sector can return 15 %-20 %, retail – 7.5 % – 15 %. Some production branches can give 6 %. But business with similar calculation in 5 % is on a critical side. The simplified rule is as follows: if business returns the capital in two years, it is good purchase. From two to five years is a usual practice but if on return of the capital more than five years leave, it means that the price of business is obviously overestimated.
The profit declared by the seller and real profit is as speak, two big differences. If the seller did not provide official tax reports but only beautiful listings of figures or, moreover, simply honest swears as proof of the words, – means says lies. Says lies, only with such installation for yourselves you should get to the truth independently. It also says lies not because he such bad but because it is the market, and to everyone would be desirable to sell the child more expensively or at least to return the money. Both I invented, and you will invent at sale of the business, if not the odd fellow who does not appreciate neither money, nor own work.
In the small businesses connected with retail trade where the main part of a turn goes in cash, you will not meet the official reports reflecting a true picture of business. Therefore for a rough estimate of a turn to you will have most to stand apart for hours and, bending fingers, to consider clients, and for more exact assessment the test period (trial) of 1-2 weeks is provided, which seller provides to the potential buyer after introduction of 10 % of the deposit. But even on test, in vanity of the working day, the superfluous one hundred dollars lowered in cash desk, is 500-700 dollars to a week turn and automatically tens of thousands of dollars to business cost from your pocket.
Procedure трайла should be accurately stipulated, for the period трайла reject aside all other aspects – equipment development, grinding in to the personnel etc. – concentrate on control of a stream of cash. Any cent of expenses or the income should not pass by your system of the account.
In поиках business to liking to you for certain will have to use business brokers. In the majority it is diligent and educated people, behind the back of which practice of conducting own business and huge practice in a purchase, sale and a business assessment. At these children is to that to learn, and they can help to understand to the beginner the desires and possibilities. But do not forget, the broker is an agent of the seller and the seller pays to the broker of 5-7 and more percent from the price of the business sold to you. And what clear his eyes and heart-felt his speech would not seem to you, it not in forces to resist against a temptation to "push" to you бизнесок. After all it is its work.
Than we can help the businessman having intention to immigrate to Australia or already being here and wishing will be fixed on this continent for a long time? As our primary activity – assistance in emigratory questions, we can pick up business, a financial and which other performance will correspond to requirements of the immigration legislation, business which will have not indirect, but the direct relation to emigration of the businessman as we will be engaged in a question of the emigration too, being the official representative of the applicant in the Australian missions here and abroad. We can help to understand to the applicant his possibilities in business of immigration and with involvement of other professionals in possibilities of bought business. For those who yet here, we can organize a fact-finding trip to Australia on short business to the visa 456 or on a tourist visa 676, and on a place together to look and ask the price of business. And, at decision-making by the businessman to prepare and put into practice all program of emigration.
We know that the category of people, intended to emigrate, are people with a certain share of adventurism in the character, these are the uneasy hearts aspiring to new, best. We same also respect you for your principle "Life is not pleasant? – Change". Therefore we call you – cool down. Business purchase in absentia is a most true and most dangerous adventurism. But it will be prepared for purchase it is in absentia possible and it is necessary. For this purpose once again we recommend to you to read the above-stated articles, and for more accurate formation of the plans wander on the market of businesses on sale. Saturday issue of the Sydney Morning Herald newspaper – the freshest and live source of information on on sale businesses in Sydney and Australia, directly Internet address of this source http://www.market.fairfax.com.au/property/mkt.html. In the same place, in announcements, you can find addresses of sites of broker offices which will provide wider list of businesses on sale.
If you will be interested by any business, and you need more detailed information on it, you can will address to the broker or is direct to the owner of business by phones provided in announcements. If you had with it difficulties and also if you need recommendations of the disinterested party on sale, address to us. Our opinion and recommendations will be independent, after all we do not receive commission charges from business sale to you. We – Migratory agency.
We wish you, dear Russian businessman, prosperity and wellbeing. We are sure that your enterprise spirit, persistence on achievement of the purposes, wisdom and confidence of decision-making and organizing abilities is absolutely not lower Australian, American or Chinese.