When you’re transmitting a large sum of money electronically, how can you be sure your money gets to the right place? Ricky Robertson, Atlantic Capital Bank’s Operational Risk Manager, discussed ways that businesses you can protect themselves and their clients from wire transfer fraud at the Sept. 28 meeting of the Georgia Association of Business Brokers. A closing should mean that the seller gets paid. Usually, the buyer wires in their down payment, the attorney develops and sends o …
Stephen M. Levinson, Esq. When buying a business, buyers usually must sign a non-disclosure agreement, or NDA, in order to review sensitive information about the business, including financial details, inventory, and legal matters. Legally, Anyone who has not signed an NDA isn’t legally bound by it, attorney and GABB affiliate Stephen M. Levinson told the Georgia Association of Business Brokers on July 27. To hear Steve’s presentation and the rest of the GABB meeting, click this link. Here’s a PD …
When it comes to buying or selling a business, a solid confidentiality agreement is a must. A key way that business brokers and M&A advisors help buyers and sellers is through their extensive knowledge of confidentiality agreements and how best to implement them. In this article, we will give you an overview of what to expect out of your confidentiality agreements. A confidentiality agreement is a legal agreement that essentially forbids both buyers and sellers, as well as related part …
Kim Eells, Senior Vice President and Small Business Administration (SBA) Business Development Officer for Georgia Primary Bank. Kim Eells, Senior Vice President and Small Business Administration (SBA) Business Development Officer for Georgia Primary Bank, discussed new SBA guidelines on dealing with Paycheck Protection Program loans when selling a business at the Nov. 10 GABB meeting. Kim is an Affiliate Board member of GABB. The SBA issued guidelines on Oct. 2 that provide a framework to determ …
Only a small percentage of the population is able to go through life without using some form of financing at some point. Most people have little choice but to finance everything from their home and car purchases to their college education. Now, most business owners would love to receive an all-cash offer for their business. But the reality of most transactions is quite different. Owner financing is very common, and sometimes it is the only way to put a deal together. Sellers have to be ready and …
By Corrie Thrasher, partner, Starfield & Smith PC This article originated on the blog of the legal firm of Starfield & Smith Corrie Thrasher, partner, Starfield & Smith PC As discussed previously in my first article, many uncertainties exist when the owners of a business who received a Paycheck Protection Program (“PPP”) loan wish to transfer their business to a purchaser. Without formal guidance from SBA, these “changes in ownership” transactions pose unprecedented chall …
When you are buying or selling a business, you might very well end up making a deal with someone from another generation. Therefore, it only makes sense to take the time to understand that individual’s background and how that might change how they behave. It is important to understand their collective experiences and the trends that shaped their identities and perspectives. At the same time, you can identify your own biases, strengths and weaknesses that may be caused by …
By Peter Siegel MBA, BizBen Founder The biggest mistake made by buyers is not seeking professional representation and guidance before closing the purchase transaction. Without an experienced broker or attorney on their side, a buyer is prone to making numerous mistakes, some of which can jeopardize the viability of the business. Even in those transactions that involved a business escrow and SBA financing, I have seen disputes and even litigation between buyers and sellers result from the buyer a …
By C. David Chambless, president of Abraxas Business Services, and a past GABB president. Evaluating the earnings potential of a small-to-medium sized business, particularly one with a single owner, is challenging. Often, a primary objective of these entrepreneurs is to make as much money as they can, while paying as little in taxes as possible. Accountants routinely assist business owners to help accomplish the goal of minimizing taxes. But, to truly understand the value of the business …
The COVID-19 pandemic is going to affect the valuation of businesses, and professionals are likely to take into account a wider number of factors when determining the fair market value of a business. That’s what two business valuation experts told the Georgia Association of Business Brokers in a conference call on Tuesday, May 26. Dan Browning is the founder and President of DB Consulting, Inc. and David H. Hern, CPA/ABV, ASA, CEPA, a financial analyst with Sofer Advisors spoke to the GABB onlin …
The second round of the SBA’s Paycheck Protection Program funding, released Monday April 27, is being distributed by SBA lenders, and is expected to be depleted within just a few days, David Brindley, VP of Small Business Lending at Live Oak Bank, told the GABB in a Zoom meeting on April 28. David Brindley Brindley also said the new round of PPP funding is tied to the SBA’s 7(a) loan program, the SBA’s primary program for providing financial assistance to small businesses. The 7(a) program will …
It’s anything but business as usual in today’s online meeting environment. Employers should keep in mind that the dynamic between you and your employees may be different when you use video conferencing. A“business-as-usual” approach to the COVID-19 situation can make an employer look both unnecessarily cold and out of touch with reality, opined Rajshree Agarwal, who is a professor of Strategy and Entrepreneurship, in an April 20th, 2020 Forbes article, “Three Keys to Engaged, Productive Telework …
Owning a business and owning the right kind of business for you are, of course, two wildly different things. Owning the wrong kind of business can make you absolutely miserable. So if you are considering buying a business, it is prudent that you invest the time and effort into determining the best kind of business for your needs and your personality. In a recent Forbes article, “What is the Right Type of Business for You to Buy?” author Richard Parker explores how b …
Loren Marc Schmerler By Loren Marc Schmerler, President and Founder of Bottom Line Management, Inc., an Atlanta-based business brokerage, M & A and consulting firm. 1. Do You WANT to Sell? Make sure you really “want” to sell. Ask yourself if you are bored, burned out, ill, have a new child, have aging parents that need your assistance, etc. Or are you simply unhappy with how much money you are making? If this is the case, you do not “need” to sell. All you need is some guidance getting back …
It’s exciting to buy a new business. However, it’s very important to be realistic about future growth. In most cases, if a business is poised to quickly grow substantially, the seller would be far less interested in selling. When evaluating a business and talking to the owner, many buyers come away with a sense that enormous growth is just “sitting there” waiting to be seized, writes Richard Parker, President of Diomo Corporation – The Business Buyer Resource Center. In a recent arti …
Scott Ward Entrepreneur Scott Ward has been on both sides of the negotiating table, both as a business buyer and a business seller. He discussed better ways to work with prospective business sellers, to prepare a business to sell and other insights at the Sept. 24 meeting of the Georgia Association of Business Brokers. Ward said business brokers “enable people to succeed and bring in hard earned assets and turn it into cash.” He said in the middle of negotiating a deal, sometimes he feels …
No one keeps a business forever. At some point, you’ll either want to sell your business or have to retire. When you’re ready to sell, it is important to streamline the process, minimize the stress, and also receive top dollar. In a recent Forbes magazine article, “How to Find a Buyer for Your Business,”serial entrepreneur Alejandro Cremades explores the most important steps business owners should take when looking to sell. Like so many things in life, finding a buyer for …
C. David Chambless, president of Abraxas Business Services and a former GABB president. By C. David Chambless, president of Abraxas Business Services Evaluating the earnings potential of a small-to-medium sized business, particularly one with a single owner, is challenging. Often, a primary objective of these entrepreneurs is to make as much money as they can, while paying as little in taxes as possible. Accountants routinely assist business owners to help accomplish the goal of minimizin …
By Linda Collett, J.D., GABB Affiliate If a potential client comes to you with something that sounds fishy or too good to be true, trust your gut. Here are some red flags: 1. They want you to hold money in your escrow account (usually a large dollar amount so the deal is attractive). The risk is that the deal or client requires you to transfer some or all of the money out of your account before your bank has time to verify the funds are legit and can cover the transfer. This a …
Finding the money to start your own small business can be a challenge. Over the decades, countless people have turned to the Small Business Administration (SBA) for help. A recent Inc. Magazine article, “Kickstart Your Business Dreams with SBA Lending,” by BizBuySell President, Bob House, explored how SBA lending can be used to the buyer’s advantage. The article covers the basics of an SBA loan and who should try to get one. House notes that the SBA doesn’t provide loans itself, but instead f …
Where your money is concerned, myths can do damage. Tammie Miller, Managing Director of TKO Miller, explored five big M&A myths that can get you in trouble in a recent Divestopedia article, Crazy M&A Myths You Need to Stop Believing Now. Miller, who has more than 20 years of investment banking experience, says many of these myths are believed by CEOs despite having zero basis in reality. Myth 1: Negotiating is Done After You Sign the LOI The letter of intention is, of course, important. …
Before buying any business, a seller must ask questions, lots of questions. If there is ever a time where one should not be shy, it is when buying a business. In a recent article from Entrepreneur magazine entitled, “10 Questions You Must Ask Before Buying a Business”, author Jan Porter explores 10 of the single most important questions prospective buyers should be asking before signing on the dotted line. She points out to remember that “there are no stupid questions.” The first question hi …
A recent article on Businessbroker.net entitled, First Time Buyer Processes by business broker Pat Jones explores the process of buying a business in a precise step-by-step fashion. Jones notes that there are many reasons that people buy businesses including the desire to be one’s own boss. However, he is also quick to point out that buyers should refrain from buying a business that they simply don’t like. In the quest for profits, many prospective owners may opt to do this, but it could ultimat …
Andrew Moore, CPA, of Frazier & Deeter speaking to the GABB. Three CPAs from Frazier & Deeter spoke at the May 28 Georgia Association of Business Brokers meeting about the emerging cannabis industry as well as other tax programs that affect both buyers and sellers of businesses. Matthew Foster, CPA, Tax Partner at Frazier & Deeter and the firm’s National Practice Leader for the Cannabis Industry, discussed the emerging cannabis industry in Georgia, including tax issues and obstacles …
By Peter Siegel, Founder of BizBen.com (California Businesses For Sale), the BizBen Network When you buy a small business, you want to be successful. But to do that, you must be able to look objectively at the company and determine whether or not it is a business that will be able to grow into the future. Many small businesses have succeeded by being on the cutting edge at one time or another. Businesses that survive long term, growth industries, are those that can change and grow along with the …
Leases should never be overlooked when it comes to buying or selling a business. After all, where your business is located and how long you can stay at that location plays a key role in the overall health of your business. It is easy to get lost with “larger” issues when buying or selling a business. But in terms of stability, few factors rank as high as that of a lease. Let’s explore some of the key facts you’ll want to keep in mind where leases are concerned. The Different Kinds of Leases …
By Peter Siegal, Founder & Senior Advisor at BizBen.com What’s the difference between a business opportunity and a going business for sale? They are NOT the same thing. A business opportunity refers to all opportunities for those in the market to buy and own their own small business. But it’s not the same thing as a going business for sale. These are five characteristics that distinguish a business opportunity an existing retail, service, restaurant or other kind of business that is for sal …
The business sale process can be complex, which is why it’s best to have expert help from a business broker. Brokers can help you avoid costly legal mistakes which can bring the entire sale process to a sudden and complete halt. Let’s take a closer look at what you can do to avoid these kinds of issues when selling your business. Major Mistake 1 – You Skipped the Non-Disclosure Agreement Nothing quite invites trouble like skipping the non-disclosure agreement. If a deal falls through, then you h …
When it comes to buying a business, nothing is more important than the factor of due diligence. For most people, this investment is the single largest financial decision that they will ever make. And with this important fact in mind, you’ll want to leave absolutely no stone unturned. Let’s examine the three most commonly overlooked areas when it comes to buying a business: retirement plans, 1099’s and W-2’s, and legal documents. 1. Examine All Legal Documents While it may sound like a “pain” to …
If you own or operate a Georgia business, you can get free confidential consulting services including helping with business plans, buying businesses and leasing space. Find out how on Sept. 25 when two experts with the University of Georgia’s Small Business Development Center speak to the Georgia Association of Business Brokers. Area Director Jeff Patterson and Business Consultant Aysha Cooper will speak to the GABB at their Sept. 25 monthly meeting. The meeting is free and open to the public a …
By Peter Siegel If you want to become your own boss, but are having trouble finding the right business to buy, there’s another option. Find an enterprise to buy that appealed to him, but was not openly being offered for sale. Peter Siegel, the Founder & Senior Advisor at California’s BizBen.com, described the experience of Steve, who was retiring from his accounting job and wanting to leverage his retirement savings into an income so that he and his wife could maintain their standard of li …
Many people know that owning a business isn’t for them. But for others, the appeal and lure of owning their own business can be powerful indeed. If you are uncertain as to whether or not this path is for you, there are a few simple questions you can ask to gain almost instant clarity. In this article, we will explore those key questions and help you determine if owning a business is in your future. 1. Are You Dedicated to Growing Your Income? Quite often people like the idea of making more money …
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 cus …
C. David Chambless is a former GABB president and president of Abraxas Business Services. By C. David Chambless Being our own boss is a dream many of us have had since first entering the workforce. Maybe it’s because we know we could implement processes that would produce better results, or we would like more flexibility in scheduling work time, or we want to leave something of lasting value to our heirs. Whatever the driver, it is important to carefully consider many aspects of this critical de …
Georgia’s SBA loan professionals will lead a panel discussion at the Feb. 27 GABB meeting about SBA lending rules and change of ownership requirements. The Georgia Association of Business Brokers, the state’s only association of professionals who work to facilitate the purchase and sale of businesses and franchises, meets at 10:30 a.m. at the Atlanta Realtors Center at 5784 Lake Forrest Dr. NW, Atlanta, GA 30328. The meeting will be preceded by a free breakfast and networking session sponsored b …
Selling your business doesn’t have to feel like online dating, but for many sellers this is exactly what it can feel like. Many sellers are left wondering, “What exactly do buyers want to see in order to buy my company?” Working with a business broker is an excellent way to take some of the mystery out of this often elusive equation. In general, there are three areas that business sellers should give particular attention to in order to make their businesses more attractive to buyers. Area #1 – T …
Dr. Matthew Loop, president of DCincome. Social media expert Dr. Matthew Loop offered practical advice on using Facebook and other applications to boost your business when he spoke to the Georgia Association of Business Brokers (GABB) on June 28. Loop offered highlights from his book, Social Media Made Me Rich, which offers a quick, practical, easy-to-understand, comprehensive reference guide for small businesses who want to learn how to generate income from the Internet. Matthew Loop calls hims …
By Michael Wade and Keith Kaylor BAT Associates, Inc. Is there an environmental liability lurking in the commercial property your client is preparing to buy? And how can you find out? Many commercial properties do have potential environmental issues, and purchasers and lenders may unknowingly be taking on substantial risks from loss of property value or liability for remediation costs. That is why conducting environmental due diligence is crucial. Fortunately, there are several types of investig …
SBA lenders Kim Eells, Cheryl Beer and Susan Kite presented at the April GABB meeting. If you want to get an SBA loan to buy or sell a business, get the information to lenders early, be honest up front about potential problems, and expect to pledge assets, including a home, to secure the loan. That advice highlighted the presentation by veteran SBA lenders to the Georgia Association of Business Brokers on April 26. Bob Smith of HealthMarkets.com was the breakfast sponsor. The program was present …
Lawrence Domenico Lawrence Domenico is the kind of lawyer you hire when you litigate, or sue someone. And he’s represented a lot of Georgia business brokers in disputes over the years. On Tuesday, Feb. 23, Larry will offer advice worth hundreds, if not thousands, of dollars to members of the Georgia Association of Business Brokers and their guests. Namely, how NOT to need to hire Larry or someone like him. How to avoid legal disputes will be the topic of the GABB meeting on Feb. 23. The GABB, th …
Third in a series on Business Brokering Sarah Wheeler, an attorney with Moore & Reese Buyer and seller strike a deal, but a thorough due diligence and either seal or sink that deal. Georgia Association of Business Brokers Vice President Mike Ramatowski moderated a panel discussion at the July meeting on getting buyers and sellers through due diligence and to the closing table. Panelists were GABB Board Member Loren Marc Schmerler, CPC, APC, President and Founder of Bottom Line Management, In …
By Susan Kite, Vice President, Signature Bank of Georgia, and Kim Eells, Vice President, The Brand Bank I. “This deal costs too much; I can’t get it financed.” SBA 7a Loans are guaranteed by the US Government, giving banks a higher comfort level to make a loan they may have denied as a conventional loan. SBA loan terms can be up to 25 years with no balloon. This means that your buyer only pays closing costs once. II. “SBA Loans have too much paperwork.” All commercial loans …
By Mark Jones, Franchise Systems Advisors404-444-3186 Owning a business is part of the American dream and owning a franchise can make that dream a reality for many people who otherwise wouldn’t have the opportunity. People are attracted to franchises because the best ones have proven to be extremely successful over the years. They combine many of the benefits of business ownership with the brand name, experience, and economies of scale provided by the established corporate franchisor. In fact, …
It may be advisable to have an attorney review the legal documents. It is important, however, that the attorney you hire is familiar with the business buying process and has the time available to handle the paperwork on a timely basis. If the attorney does not have experience in handling business sales, you may be paying for the attorney’s education. Most business brokers have lists of attorneys who are familiar with the business buying process. An experienced attorney can be of real assistance …
A professional business broker can be helpful in many ways. They can provide you with a selection of different and, in many cases, unique businesses, including many that you would not be able to find on your own. Approximately 90 percent of those who buy businesses end up with something completely different from the business that they first inquired about. Business brokers can offer you a wide variety of businesses to look at and consider. Business brokers are also an excellent source of informa …
When you find a business, the business broker will be able to answer many of your questions immediately or will research them for you. Once you get your preliminary questions answered, the typical next step is for the broker to prepare an offer based on the price and terms you feel are appropriate. This offer will generally be subject to your approval of the actual books and records supporting the figures that have been supplied to you. The main purpose of the offer is to see if the seller is wi …
Certainly, you need adequate capital to buy the business and to make the improvements you want, along with maintaining some reserves in case things start off slowly. You need to be willing to work hard and, in many cases, to put in long hours. Unfortunately, many of today’s buyers are not willing to do what it takes to be successful in owning a business. A business owner has to, as they say, be the janitor, errand boy, employee, bookkeeper and “chief bottle washer!” Too many people think they ca …
Obviously, you want to consider only those businesses that you would feel comfortable owning and operating. “Pride of Ownership” is an important ingredient for success. You also want to consider only those businesses that you can afford with the cash you have available. In addition, the business you buy must be able to supply you with enough income – after making payments on it – to pay your bills. However, you should look at a business with an eye toward what you can do with it – how you can im …
Generally, at the outset, a prospective seller will ask the business broker what he or she thinks the business will sell for. The business broker usually explains that a review of the financial information will be necessary before a price, or a range of prices, can be suggested for the business. Most sellers have some idea about what they feel their business should sell for – and this is certainly taken into consideration. However, the business broker is familiar with market considerations and, …
There have been many surveys taken in an attempt to answer this question. Most surveys reveal the same responses, in almost the same identical order of priority. Here are the results of a typical survey, listed in order of importance: 1. To do my own thing, control my own destiny. 2. Don’t want to work for someone else. 3. To better utilize my skills and abilities. 4. To make money. *It is interesting to note that money is not at the top of the list, but comes in fourth.
An existing business has a track record. The failure rate in small business is largely in the start-up phase. The existing business has demonstrated that there is a need for that product or service in a particular locale. Financial records are available along with other information on the business. Most sellers will stay and train a new owner and most will also supply financing. Finding someone who will teach you the intricacies of running a business and who is also willing to finance the sale c …