No. Review the actual rights and how the applicant will develop and direct the enterprise.
Read authority precisely
A transition role can take different forms. Do not infer control or lack of control solely from the seller’s continued presence.
Where a minority United States partner remains involved after closing, the shareholders' agreement decides the question: veto rights, reserved matters and board composition can leave a nominal majority owner without control. Eligibility turns on treaty nationality by citizenship, at least fifty percent treaty ownership, substantial at-risk capital in a real operating enterprise, non-marginality, and the investor's development and direction of the business. Veto rights held by a minority, a management contract handing daily operations to an outside firm, or a class of shares carrying no vote can all leave a majority holder unable to direct anything. A list of twelve choices the investor will personally make — the lease terms, the opening price list, the first two hires, the supplier who gets the account — persuades more than a paragraph asserting control. Treaty nationality, a substantial sum irrevocably committed and at risk, and the buyer's ability to develop and direct the company are still assessed separately, and profitability cannot supply a qualification the buyer lacks.