Attracting the Immigrant Investor.

Up and Forward

With passive investing no longer an option, investor immigrants are forced to either start a business or join an existing business to immigrate.  In fact many immigrant investors expect to lose money when they invest in a foreign business. This has led many to believe that immigrant investors are less savvy, more desperate, etc. However, more often than not, business deals do not close.  

In fact, immigrant investors typically have the following profile.

• Might have post-secondary education
• Senior business and/or professional experience
• Have children and/or are married
• Have >$ 0.1 MM to invest
• English is not their mother tongue

So what does an immigrant investor like in a business?

• stable and recurring profits
• sufficient profits
• reasonable expenses
• revenue growth potential
• has or will have indeterminate, full-time staff that are model employees
• in a government favoured sector: e.g. technology
• operating more or less smoothly
• has a history of good workplace practices
• < $1 MM investment
• comply with local laws
• no lawsuit or disputes
• located in a favourable locales: e.g. not too remote
• kept clear and accurate records
• has a need for the immigrant investor in an active role
• resistant to business shocks: e.g. pandemic, natural disasters, etc.
• minimal problems: e.g. expiring licensing agreement, union dispute, etc.
• has significant ties to assets: e.g. real estate, intellectual property, etc.

What might be enticing to an immigrant investor may not totally align with government objectives. 

• new businesses in new industries
• businesses located in rural communities
• job creation for traditionally disadvantaged individuals
• passive immigration schemes
• disguised business deals to purchase real estate
• overall benefit to the Canadian labour market and economy

Thus, when assessing whether your business is sale ready, you have to consider how attractive your business in the eyes of the immigrant investor. Moreover, per the immigrant investor's qualifications, which immigration strategy makes sense. Here are some factors that you will need consider for your immigrant investor.

• English requirements?
• conditional purchases advisable?
• pre-existing immigration issues: e.g. rejected visas?
• net worth verification required?
• family member sales allowed?
• hiring family members allowed?

This is where an licensed immigration professional, such as a Regulated Canadian Immigration Consultant, can make a huge difference to demystify complex immigration rules into a win-win arrangement for all involved parties.

Don't hesitate, contact us today!

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