Real Estate Commissioners To Speak July 31 to GABB
ATLANTA— Georgia Real Estate Commissioner Lynn Dempsey and Deputy Commissioner Craig Coffee will speak on Tuesday, July 31, to the Georgia Association of Business Brokers. The GABB is the state’s only professional association of professionals who help in the sale and purchase of businesses and franchises.
The commissioners will discuss licensing requirements for professional business brokers as well as answer questions about what their board does. The Georgia Real Estate Commission administers the license law that regulates brokers, salespersons, and community association managers. In addition, the Real Estate Commission supplies staff support to the Georgia Real Estate Appraisers Board, but has no authority over the administration of the Georgia Appraisal Act. The commission’s goal is to protect the public interest by means assuring every individual’s right to justice and equal opportunity.
The GABB is composed of professionals who work with owners of Georgia businesses. 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.
The GABB meets at the Atlanta Realtors Center at 5784 Lake Forrest Dr. NW, Atlanta, GA 30328. The monthly meeting begins at 10:30 a.m. and is preceded at 9:45 a.m. by a free light breakfast and networking session sponsored by GABB affiliate Ben Zachariah of Monarch Tax Credits.
Dempsey is a second-generation auctioneer and the former president and managing broker of Dempsey Auction Company. He is a past president of the Georgia Auctioneers Association and was named to the Georgia Auctioneers Hall of Fame. Dempsey was a member of the Rome-Floyd County Development Authority and served on the Georgia Auctioneer’s Commission. He previously sat on the boards of directors for the Greater Rome Chamber of Commerce and the Georgia Chamber. Dempsey is a graduate and past chairman of Leadership Georgia. He sits on the advisory board for the Exchange Club Family Resource Center for the Prevention of Child Abuse and teaches Sunday School at Rome First United Methodist Church. Dempsey earned a bachelor’s degree in Real Estate from the University of Georgia. He and his wife, Katie, have two children and seven grandchildren. They reside in Rome.
For more information about the GABB, contact GABB President Mike Ramatowski at 770-634-0428 or rambizgroup@bellsouth.net call Diane Loupe at 404-374-3990 or email director@gabb.org.
Read MoreAre You Asking a Reasonable Price for Your Privately Held Company?
You’ve spent a lifetime building up your company, so when it’s time to sell, you naturally want top dollar for it.
But is your company worth what you think it is?
Placing a price on a privately-held company is usually more complex than placing a value, or a price, on a publicly-held company. This is primarily because privately held companies don’t have audited financial statements.
Why are Audited Financial Statements Lacking in Privately-Held Companies?
Preparing an audited financial statement is expensive and, as a result, many companies that have not gone public simply forego the expense. On the other hand, publicly held companies reveal much more information regarding their finances as well as a range of other kinds of information.
Compared to a privately-held company, a publicly held company can often seem like an “open book.” Buyers are left with the proposition of having to dig out a lot more information from a privately-held company in order to assess whether or not a valuation or price is accurate.
What Can You Do to Overcome this Factor?
You, as the seller, can help streamline this process. By having as much information available as possible and having your accountant make sure that your numbers are presented in a manner that is easy to understand and follow, you will increase your chances of selling your business.
Experts agree that there are several steps a seller of a privately-held company can make when he or she is establishing a price or a value. First, use an outside appraiser or expert to determine a value. Next, establish what your “go-to-market” price is. Third, know your “wish price.” A seller’s “wish price” is the price that he or she would ideally like to see. Finally, it is critical that sellers establish the lowest price that they are willing to take. You should know in advance how much you are willing to sell for as this can help a negotiation move along.
The Marketplace Will Ultimately Decide
It is common that the final sale price for the company be somewhere between the asking price and the bottom-dollar price established in advance by the seller. Yet, it is important to note, that on occasion a selling price may, in fact, be lower than any of the four we’ve outlined above. At the end of the day, the undeniable fact, is that the marketplace will establish the final sales price.
Here are a few of the areas that you can expect a buyer to review when establishing the price that he or she is willing to pay: stability of the market and stability of earnings, the potential of the market, product diversity, the size of the customer base, the number and seriousness of competitive threats, how broad the customer base is, the relationship with suppliers, the distribution network in place, needs for capital expenditures and other factors. The more favorable each of these points are, the more likely it is you’ll receive a higher price.
Copyright: Business Brokerage Press, Inc.
Read MoreA Look into Health Care vs Well Care
By Bob Smith
Licensed Health & Life Insurance Agent
Check-out North American Health Plans.
In a few days, we will reach the halfway point in the calendar year and make the turn for the proverbial back nine. This is the time of the year when health insurance companies present their 2019 health plans to state Insurance Commissioner’s Offices, and we await with trepidation. Which insurers will offer plans in 2019, what will the plans look like, and will individuals and small (under 50) groups responsible for purchasing their own health coverage be able to afford them?
The congressional debate over the Patient Protection and Affordable Care Act — a.k.a. ObamaCare or ACA — did not end with the law’s passage in 2010 or implementation in 2014. Each year since the law’s enactment, health insurers have withdrawn from offering on and off health plans; and the cost for those not qualifying for a federal tax credit (aka subsidy) based upon income has increased and HMO choices become more limited. The sand under our feet has shifted mightily while the debate on how to deliver care continues. With a sense of optimism self-employed workers, independent contractors and employees without employer sponsored (and subsidized) health plans still have choices and the light at the end of the tunnel is not the oncoming train.
What respite do individuals purchasing health insurance on or off the Federal Marketplace have?
- One course is stay healthy, eat sensibly, exercise daily and adhere to our mother’s advice of eating an apple a day to keep the doctor away. Swimming in the right gene pool doesn’t hurt either.
- Since the era when doctors made house calls (“the good old days”), health insurance existed only to protect against catastrophic medical consequences. The option was to be self-insured and pay cash for the medical services rendered (www.healthbluebook.com and www.fairhealthconsumer.org). And though cash pay policies are a growing trend where patients can avoid miscoding CPT or ICD-10 codes, this isn’t medically or financially feasible upon a trip to the hospital resulting from a serious medical issue.
- There are PPO health plans that offer a cost-effective and viable alternative to HMO plans offered on the Federal Marketplace. The plans provide a strong network of doctors with premiums typically offering savings of 50% or more, critical illness supplements and other valuable imbedded benefits. These plans also work in tandem with or without self-pay policies at the doctor’s office. Enrollment is not limited to a narrow window and if you are not fully pleased with your existing coverage you are able to consider alternatives without having to wait till open enrollment and January 2019.
Inherent in consideration of insurance is an individual’s risk threshold. Bad things happen to good people and at the heart of wellness is prevention. An integral component in prevention is the Primary Care Physician’s role. This fact has been recognized and promoted by HIPnation, a growing concierge-style model with multiple doctor practices in the Atlanta Metropolitan area. The membership program is built upon a PrimaryPlus foundation with an eye towards outpatient care. Founded by doctors, this patient-centered concierge service is helping bring down their members’ costs and pairs with low cost insurance coverage. The resulting better care from a personal physician for $100/month with no copay and no deductible has proven to lower overall annual costs. Check-out www.HIPnation.com.
Healthcare is a complicated and what’s most important is having access to affordable health insurance and a physician practice that is patient focused with an eye on prevention that can help forestall future medical consequences.
Note: It’s important to do due diligence with non-Marketplace plans as they are underwritten and the devil is in the details.
Bob Smith
404-593-9663
With this in mind, saving more than $2,500/yr should be worth a 30 min conversation for additional information. And rest assured I am still making house calls.
Read MoreHicks, Jay Named Life Members of the GABB
ATLANTA— Henry Hicks, chairman and CEO of Georgia Business Associates, Inc., and Charles Jay, founder and owner of Jay & Associates, LLC of Macon, have been named life members of the Georgia Association of Business Brokers. The association’s board honored the two longtime members for their decades of service to the GABB, the state’s only professional association of professionals who help in the sale and purchase of businesses and franchises.
Both Mr. Hicks and Mr. Jay helped pioneer the profession of business brokering in Georgia. Henry Hicks, CBI, BCB, M&AMI, Fellow of the IBBA is a former president of the International Business Brokers Association (IBBA) and a former treasurer and director of the GABB board. Mr. Jay is a former president of the GABB and is one of the first five individuals in Georgia to be awarded the Certified Business Intermediary (CBI) designation by the IBBA.
The GABB is composed of professionals who work with owners of Georgia businesses. 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.
Mr. Hicks has represented sellers and buyers since 1992. His merger and acquisition activities include manufacturing, distribution, and service companies. Successful M&A representations include design/construction firms, business to business distribution, industrial services, temporary placement firms for professionals, food service, and insurance industry services.
Mr. Hicks is an active member of the International Business Brokers Association, which he has served as Chairman of the Board of Directors, Treasurer, and Director. His activities in the IBBA have included Chair of Finance, Chair of Membership, Chair of Government Affairs, and Chair of Publications where he served as Editor of the IBBA News. He has been awarded the professional designation of Lifetime Certified Business Intermediary by the IBBA, recognized for his services to IBBA by being named Fellow of the IBBA, and received the Chairman’s Award. Mr. Hicks currently serves as on the Board of Directors of the Business Intermediary Education Foundation, Inc.
Mr. Hicks has been recognized as a member of the Million Dollar Club of GABB. He was instrumental in the establishment of the GABB multiple listing service that supports co-brokerage and provides greater exposure to available listings and in the establishment of the Business Brokerage Management System. He is a member of the Atlanta Board of Commercial Realtors.
Mr. Hicks has been a CPA in public practice with KPMG Peat Marwick. His clients included an array of manufacturing, distribution, and service organizations. He is a member of AICPA and NC Association of CPAs. He has served as financial officer for an information technology firm and a real estate developer of in-town high-rise mixed use properties. He has served as Chairman of the Board and CEO of a North Carolina savings bank, which he took public with an IPO in the mid-eighties. Mr. Hicks received his undergraduate degree from Georgia Institute of Technology and a Masters degree in business from Georgia State University.
He is a member of the Rotary Club of Roswell where he has served as Chair of the Charity Committee. He has served as President and Chairman of the Board of the Child Development Association of North Fulton, a non-profit organization providing child care services for one hundred forty disadvantaged children. Mr. Hicks has served as a board member of the Georgia Ensemble Theater in Roswell. He served as Treasurer and as a member of Board of Directors of the Chattahoochee Nature Center. He has served on the Planning and Zoning Committee of the City of Roswell. He has been Elder, Deacon, and Treasurer of the Roswell Presbyterian Church. He is a former member and Past President of the Kiwanis Club of Rocky Mount, NC. He was recognized as Jaycee of the Year by the Roswell Jaycees and Boss of the Year by the Rocky Mount Professional Woman’s Club.
Mr. Jay is a Certified Business Intermediary (CBI) based in Macon, Georgia. His company, founded in 1984, works closely with select clients in investments, commercial real estate, insurance, and business acquisitions throughout the State of Georgia.
Mr. Jay is active in both the IBBA and GABB. Through Jay’s affiliation with the GABB, he earned the professional designation of Board Certified Broker (BCB). His CBI and BCB designations show the business community the extra steps and commitment that are synonymous with total professionalism. It denotes a combination of experience and education only a small percentage of business brokers have attained.
Jay has received the GABB Phoenix Million Dollar Club Award, GABB Lifetime Achievement Award and is a Life Member of the GABB Million Dollar Club.
His community activities including serving as a Mercer University Trustee, President of a Financial Institution for 20 years and Chairman of the Board, President or Board member of more than 30 different business, civic or religious organizations in his community and state.
In 1998 Jay & Associates received the Better Business Bureau of Central Georgia Torch Award for Marketplace Ethics. This award recognizes and encourages ethical business practices and the recipient must be a company committed to high standards of behavior in buyer and seller relationships.
Mr. Jay’s extensive list of community accolades includes the United Way of Central Georgia J. Clay Murphey Society Award, the Man of the Year in Macon-Bibb County, Outstanding Georgia Citizen Award, the Service to Mankind Award, the Golden Deeds Award, one of Five Outstanding Young Men of Georgia, the Cherry Blossom Hall of Fame and the Stratford Academy Hall of Fame.
The GABB’s monthly meeting is at the Atlanta Realtors Center at 5784 Lake Forrest Dr. NW, Atlanta, GA 30328. For more information about the GABB, contact GABB President Mike Ramatowski at 770-634-0428 or rambizgroup@bellsouth.net call Diane Loupe at 404-374-3990 or email director@gabb.org.
Read MoreExamining the Mind of the Serious Buyer – 5 Points to Consider
Are you looking for a way to perfect your presentation? Understanding what the typical serious buyer wants will help you get your business ready for selling.
Let’s turn our attention to looking at what these types of individuals and entities really want. After all, your time is precious.
1. An Interest in the Industry
First, prospective buyers will want to have a better understanding of your industry. Any serious buyer will want to understand the industry as a whole, as well as your existing customers, prospective customers and the strengths and weaknesses of your business. Key factors, such as threats from competition, will also be a major factor for prospective buyers.
2. Seeking Knowledge about Discretionary Costs
Secondly, expect buyers to take a long look at discretionary costs. Sellers will often look to reduce their expenses in a range of discretionary areas including advertising, research and development and public relations; this is done to help make a business appear more attractive to a buyer. However, it is important to note, that a savvy prospective buyer will notice reduction in discretionary expenses.
3. Inquiries about Wages and Salaries
Wages and salaries is another area that receives attention from buyers. If your business is paying minimum wage or offers a limited retirement program then employee turnover is likely to be high. Buyers may be concerned that employee stability may be low, which, of course, can potentially disrupt business.
4. Questions about Cash Flow and Inventory
No serious buyer will ignore the issue of cash flow. Any prospective buyer will want to know that the business they are considering buying will continue to generate profits both now and in the future.
Inventory is another area that will not be ignored. If your business is carrying a large amount of antiquated, unsalable or simply unusable inventory, then expect that to be factored into a prospective buyer’s decision-making process. It is best to disclose such inventory instead of hiding it, as it will be discovered during due diligence.
5. Seeking Capital Expenditure Details
Finally, capital expenditures will be examined by buyers. You can expect buyers to carefully evaluate machinery and equipment to ensure that there will be no expensive surprises looming on the horizon.
These give areas are definitely not the only areas that buyers will explore and investigate. Everything from financial agreements and environmental concerns to government control will be examined in depth. You should invest some time thinking about the situation from the perspective of a buyer, as this will help you discover many potential problems and try to secure viable workarounds. Working closely with a business broker is another way to ensure that you can successfully anticipate the needs of buyers.
Copyright: Business Brokerage Press, Inc.
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