Owners are often asked, “do you think you will ever sell your business?” The answer varies from, “when I can get my price” to “never” to “I don’t really know” to everything in between. Most sellers may think to themselves when asked this question, “I’ll sell when the time is right.” Obviously, misfortune can force the decision to sell. Despite the questions, most business owners just go merrily along their way conducting business as usual. They seem to believe in the old expression that basically states, “it is a good idea to sell your horse before it dies.”
Four Ways to Leave Your Business
There are really only four ways to leave your business. (1) Transfer ownership to your children or other family members. Unfortunately, many children do not want to become involved in the family business, or may not have the capability to operate it successfully. (2) Sell the business to an employee or key manager. Usually, they don’t have enough cash, or interest, to purchase the business. And, like offspring, they may not be able to manage the entire business. (3) Selling the business to an outsider is always a possibility. Get the highest price and the most cash possible and go on your way. (4) Liquidate the business – this is usually the worst option and the last resort.
When to Start Working on Your Exit Plan
There is another old adage that says, “you should start planning to exit the business the day you start it or buy it.” You certainly don’t want to plan on misfortune, but it’s never to early to plan on how to leave the business. If you have no children or other relative that has any interest in going into the business, your options are now down to three. Most small and mid-size businesses don’t have the management depth that would provide a successor. Furthermore liquidating doesn’t seem attractive. That leaves attempting to find an outsider to purchase the business as the exit plan.
The time to plan for succession is indeed, the day you begin operations. You can’t predict misfortune, but you can plan for it. Unfortunately, most sellers wait until they wake up one morning, don’t want to go to their business, drive around the block several times, working up the courage to begin the day. It is often called “burn-out” and if it is an on-going problem, it probably means it’s time to exit. Other reasons for wanting to leave is that they face family pressure to start “taking it easy” or to move closer to the grandkids.
Every business owner wants as much money as possible when the decision to sell is made. If you haven’t even thought of exiting your business, or selling it, now is the time to begin a pre-exit or pre-sale strategy.
Atlanta Mayor Kasim Reed talked about business, pensions, schools, his political ambitions and the Atlanta Braves at a Tuesday morning meeting with the Georgia Association of Business Brokers.
Reed spoke about his own administration’s goals, including reforming the city’s pensions, expansion of Hartsfield airport and his bipartisan efforts to support the deepening of the Savannah River. Great cities for business have great transportation systems, and Atlanta’s airport can get a traveler to 80 percent of the U.S. within two hours. Atlanta doesn’t have an ocean, so Savannah “is the best we could do.”
He said he was confident his decision not to offer millions to build a new Braves stadium was the right decision, and also predicts that redevelopment of the area around the Ted will vindicate him. He told brokers he strives to lead a boring life so that news doesn’t focus on his personal faults, and says he has no political ambitions beyond Atlanta City Hall. Being Atlanta’s mayor was his goal.
The speaker for the Feb. 25 meeting will be Atlanta Business Chronicle publisher Ed Baker.
Also at Tuesday’s meeting, GABB President C. David Chambless announced a membership drive, asking each GABB member to bring in at least one new member. GABB will offer a GABB member an incentive of $50 for the second new broker member they enlist for GABB. Contact GABB Executive Director Diane Loupe at firstname.lastname@example.org for more information about membership.
Atlanta Mayor Reed Speaks to GABB Next Tuesday; Membership Renewals Due
ATLANTA, GA. – Atlanta Mayor Kasim Reed will discuss the city’s business climate when he speaks to the Georgia Association of Business Brokers next Tuesday, Jan. 28, at 10:30 a.m. at the South Terraces Conference Center. The GABB is the state’s largest professional organization dedicated to buying and selling businesses and franchises.
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 email@example.com or 404-627-4454 or GABB Executive Director Diane Loupe at 404-374-3990 or firstname.lastname@example.org.
The speaker for GABB’s Feb. 25 meeting will be Atlanta Business Chronicle Publisher Ed Baker.
Please renew your GABB membership for 2014
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. Also, only current members have access to the GABB’s forms.
Mayor Kasim Reed
Re-elected in 2013 to a second term, Mayor Reed is intricately involved in the issues of both Atlanta and the metropolitan Atlanta region. He chairs the Regional Transit Committee of the Atlanta Regional Commission, and is a member of the Leadership Georgia Class of 2000, and Leadership Atlanta Class of 1998. Mayor Reed has been recognized nationally as a preeminent leader. He chairs the Transportation and Communications Committee of the U.S. Conference of Mayors, and he is a member of the Aspen Institute-Rodel Fellowship Class of 2007.
Among his many accolades since taking office, Reed received the Distinguished Leadership Award from the National Forum for Black Public Administrators in July 2012. The Joint Center for Political and Economic Studies in Washington D.C. honored him in May 2012 with the Louis E. Martin Great American Award, saying he “heralds a new and creative approach to leadership.” Governing Magazine named Mayor Reed one of the year’s top state and local government officials in November 2011. Georgia Trend magazine recently names Mayor Reed as Georgian of the Year.
Atlanta’s 59th mayor received his Bachelor of Arts and Juris Doctor degrees and an honorary Doctor of Laws from Howard University in Washington D.C. As an undergraduate member of Howard University’s Board of Trustees, he created a fundraising program that has contributed more than $10 million to the school’s endowment since its inception. Mayor Reed was appointed as Howard University’s youngest General Trustee in June 2002 and remains a dedicated member of the Board of Trustees.
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 email@example.com
Join or renew your membership in GABB in 2014!
If you no longer wish to receive emails from GABB, please email firstname.lastname@example.org to ask to be removed from our mailing.
GABB members represent owners of Georgia businesses in extremely important transactions: the sale of their businesses. GABB members help business owners determine the asking prices of their businesses, create marketing plans and strategies for the sale of their businesses, and identify and qualify buyers of their business while keeping the sale confidential from employees and customers. Many of today’s business buyers are individuals who have decided not to re-enter corporate America, but are ready to control their own destiny by purchasing and operating a Georgia business. Many business buyers are also current business owners who saw 2013 as an opportunity to grow their revenues through purchases of competitors or strategic partners.Read More
The joint industry coalition of professional associations and professionals took a critical step forward yesterday. As partners in this effort, the IBBA and M&A Source, side by side with AM&AA and regional associations, have worked diligently to help create this opportunity for our profession, our customers and clients. It is a critical time to act!
Situation: The US House of Representatives passed H.R.2274 on Tuesday, January 14, 2014. A companion bill to H.R. 2274 was immediately introduced to the Senate as S.1923 with bi-partisan sponsors. Senator Joe Manchin, III, (D WV) and Senator David Vitter (R LA) have co-sponsored S.1923.
Immediate Request: Please contact your Senator’s office immediately by phone and email to ask them to vote to pass S.1923. Please consider calling on your support staff, associated brokers, family or others in your network to do the same.
After you make those contacts, please also:
Follow the progress (one way is at GovTrack.us)
Watch for follow up communications as to how you can help move this to passage into law!
If you are not aware of what this bill does for our profession and the business community we serve, see the attached summary of the H.R. 2774 bill, wording of the bill, and a news article. This has been an expensive undertaking and has further to go. Please help share the burden and respond with financial help using the attached card.
We are nearing the finish line, but work still needs to get done. We need your support both on the ground and in the pocket. Please consider pledging to the campaign. We have spent around $330,000 and got farther than most people ever get when trying to get a bill passed by Congress. We owe our advisors and lobbyists an additional $310,000. More expenses will be incurred getting this bill into law. The end result if passed: you will be free to practice our profession without fear of or uncertainty regarding federal sanctions. Help us to help you!
Dora Lanza & Steve Wain
2014 M&A Source and IBBA Chairs
NOTICE TO REAL ESTATE LICENSEES FROM THE GEORGIA REAL ESTATE COMMISSION
The Commission is proposing changes to the Advertising Rule. The purpose of these changes is to address the use of the Internet to advertise real property.
You can review and comment on the proposed Rule changes by going to www.grec.state.ga.us and following these steps:
1. On the left-hand column, under “Quick Links”, click on
“Real Estate License Law.”
2. Click on “Proposed Rule Changes”. Then click on the link to view proposed Rule 520-1-.09 Advertising.
Georgia Real Estate Commission