Buying a US Business while located in Europe. Good idea ?

searcher profile

November 26, 2023

by a searcher from ESSEC Business School in 14100 Lisieux, France

Hi,

I’m located in Europe. I’m looking for buying a small SAAS business (less than 10 people). As there are very few in Europe and plenty of them in the US, I’m spending more time searching in the US than in Europe. Those businesses can be run fully remote which is key in this decision as I would stay in Europe after buying the business.

One of my friend who leaved for 10 years in the US discouraged me from acquiring a US company while leaving in Europe. Legal environment is different and can lead to serious trouble if done wrong. Of course lawyers would do the job but this might cost me more than I can imagine in due diligence or any other advice or services I would need to run this business. Plus, I might fall in a lot of traps anywhere, just because I’m abroad and don’t know the ins and outs of the country.

Those are scary beliefs I would like to weight.

Is someone willing to share his thoughts on this ? Were you in the same situation (abroad, buying and running remotely a business in the US) and how was that experience ? What would your advice be, please ?

Thanks,

Pierre

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Reply by a searcher
from ESSEC Business School in 14100 Lisieux, France
Yes it would be a truly remote company. I already saw a few of them with no physical headquarter and working with contractors only. My beliefs are not rational, based on trials where amounts involved are sky high. Somehow, I've been told not to make any move without consulting an attorney. It's exagereted obviously but to what extent ? I'm looking for some kind of figures of what would cost an average year of running a small business (< $1M revenue - 4 people - SAAS Business) in terms of legal fees. I consider 2 different hypothesis : 1/ there is no particular trouble or 2/ a customer sues the company for whatever reason. Not easy to say, I guess but if you have some thoughts, I'd be happy to hear them. Thanks.
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Reply by a searcher
from Auckland University of Technology in Auckland, New Zealand
It somewhat depends on the company you are buying but I'm a traditionalist on this one.

You are not going to be as effective a leader over a laptop as you will be in person, especially since you will be pursuing a fully remote approach.

It depends on your goals ultimately but as long as you know that you are handicapping yourself before you buy the business then go for it.
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