Use the actual operating plan, costs, customer evidence and investor control. Explain the basis for the enterprise’s capacity rather than relying only on the owner’s enthusiasm.
Keep forecasts grounded
A small initial team does not eliminate the need to establish nonmarginality.
Before an offer becomes binding, request three years of tax returns, payroll registers, the customer list with concentration, the lease, supplier agreements and any franchise or distributor agreements with change-of-control clauses. Several years of financial statements and tax filings, payroll records showing real employees, the equipment list with titles and valuations, the customer contracts, the lease, and any licences the business holds. Bring ownership records, funding history, the purchase or formation agreement, and the provisions governing any loan or escrow arrangement, along with operational evidence explaining what the enterprise will actually do. Executed agreements, the bank trail, security papers, and realistic operating records establish these facts better than a broker summary or prospective budget alone. Professional costs include a U.S. immigration attorney, a business lawyer to draft the purchase agreement and lease assignment, and an accountant to value the inventory and document the source of funds. Alongside the trail sit the commercial documents, including the signed purchase agreement, the note in its final form, any escrow instructions, leases, and the operating authority and insurance the business will hold.