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NOTRE-DAME-DE-L'ÎLE-PERROT · E-2 FIELD GUIDE

How should turnaround working capital be counted alongside the purchase price?

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THE DIRECT ANSWER

Establish actual enterprise cost and turnaround funding from the documented budget. Lower-cost businesses generally require a higher investment proportion, but the bargain price alone does not decide the result. Working capital needs assessment according to actual allocation and commitment, not merely its reserve label.

Distinguish business spending from application spending

Equipment, renovations, deposits, inventory and pre-opening payroll are business costs. Fees for preparing an immigration application belong in a different category, while some professional work relates to the transaction itself, so treatment depends on the actual invoices rather than a blanket rule. Confirm current government charges as each step arrives. No sum guarantees an approval, and no plan guarantees a return on the money invested.

The total contract headline is not a substitute for identifying qualifying committed capital, and E-2 has no universal fixed investment threshold. A plan that funds the purchase and nothing else invites the conclusion that the enterprise is undercapitalised, which bears on both the substantiality and the marginality questions. E-2 has no universal minimum; capital must be substantial compared with the cost of establishing or buying this enterprise, irrevocably committed, at risk and tied to a real non-marginal operation.

A smaller total needs an accurate assessment, not automatic rejection or retention of the superseded higher figure.