Greetings members of the Georgia Association of Business Brokers:
Please take a moment in this new year to renew your GABB membership.
Renew your GABB Broker membership here. (Reminder that the GABB Board voted to change membership categories, eliminating the associate membership designation.)
In 2014, the GABB plans to publish a directory of business brokers and affiliates and to include every member current on their dues by Feb. 28.
Please also mark your calendars for our Jan. 28 meeting, when our guest speaker will be Atlanta Mayor Kasim Reed. The GABB’s monthly meeting at 10:30 a.m. at the South Terraces Conference Center is preceded at 9:45 a.m. by a free light breakfast and networking session. The South Terraces Conference Center is at 115 Perimeter Center Place, Atlanta. For more information about the GABB, contact GABB President C. David Chambless at firstname.lastname@example.org or 404-627-4454 or GABB Executive Director Diane Loupe at 404-374-3990 or email@example.com.
The speaker for our Feb. 25 meeting will be Atlanta Business Chronicle Publisher Ed Baker.
If you have any problems with your membership renewal, or have any other questions about GABB, please contact Diane Loupe at 404-374-3990 or firstname.lastname@example.org
Join or renew your membership in GABB in 2014!
If you no longer wish to receive emails from GABB, please email email@example.com to ask to be removed from our mailing.
In many cases, the sale of a small company is “event” driven. That is, the reason for sale is often an event such as a health decline or illness, divorce, partnership issues, or even a decline in business.
A much more difficult reason for selling is one in which the owners simply want to retire and live happily ever after. Here is the problem:
Suppose the owners have a very prosperous distribution business. They each draw about $200,000 annually from the business plus cars and other benefits. If the company sold for $2 million, let’s say after debt, taxes and closing expenses, the net proceeds would be $1.5 million. Sounds good, until you realize that the net proceeds only represent about 3 1/2 years of income for each (and that doesn’t include the cars, health insurance, etc.). Then what?
The above scenario is not atypical, especially in small companies. These are solid companies that provide a very comfortable living for two owners. In the above example, the owners obviously decided they couldn’t sell because it didn’t make economic sense to them. The business was worth much more to the owners than to any outside buyer. Perhaps they thought that an intermediary could produce a buyer who would be willing to pay far more than the business was worth. But, the M&A market is a fairly efficient one.
So, what should they do?
The downside is that competition could enter the fray and their business would not bring in the same cash flow.
The business could also suffer because the owners are not continuing to build it. They apparently want to retire and take life easy, and this mind-set could dramatically undermine the business.
If the owners are forced to sell the business because it is declining, they, most likely, won’t even receive the $2 million they might have received earlier.
On the other hand, the owners, ready to begin their happily ever after, could bring in a professional manager. This addition would cut their earnings slightly to pay for the new manager, but it would also reduce their responsibilities and give the business a chance to grow with new energy and ideas.
Thanksgiving has gone, and Black Friday, too,
Oh what in the world is there left to do?
The Georgia Business Brokers Association,
has an event that promises to be great fun.
So if you want to attend our gala on Thursday,
You must reserve without delay, today.
Click on this embedded link
and you’ll reserve a spot in a wink!
Maggianos in Buckhead will be our host.
The party will start at 6 p.m. (or meridian post)
Put on your fancy clothes and join us this night,
And we’ll celebrate GABB just right,
Remember to bring one unwrapped toy,
To bring hospitalized children some joy.
Once again, go to this internet spot
To reserve for our gala, regrets you’ll have naught.
Can’t remember if you reserved or are tardy?
Here’s the list of members coming to our party:
Cheryl Beer; Dargan Burns, III; Dave Chambless; Ted Chernak; Shannan Collier; Germaine Curtin; Greg DeFoor; Eric Gagnon; Judy Garcia; Henry Hicks; Mark Jones; Steven Josovitz; Pepper Kelly; Mike Kelly; Diane Loupe; Jeff Merry; Jon Merry; Leigh Milton; William Mortensen; Nick Nicholson; Carolyn Robinson; Matt Slappey; J. Snypp; David Still; Gareth Young and Greg Younts.
Questions, please pose to Diane Loupe at firstname.lastname@example.org, and the reservation deadline is 5 p.m. Dec. 2.Read More