Don’t Want to Get Sued? Come to GABB on Tuesday, Feb. 23
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, the state’s only professional association dedicating to buying and selling businesses and franchises, will meet at 10:30 a.m. at the South Terraces Conference Center, 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, near Perimeter Mall. The meeting is open to the public at no charge.
Samantha Martin, SBA lending specialist with the Fifth Third Bank, is sponsoring the meeting.
Mr. Domenico is a managing partner of the law firm of Mozley, Finlayson & Loggins. He practices extensively in the areas of commercial and business litigation, products liability defense, and general litigation. Mr. Domenico also has extensive experience in assisting start up and existing businesses. In addition, Mr. Domenico has broad experience in alternate forms of dispute resolution including arbitration and mediation.
Mr. Domenico received a B.A., cum laude, from the University of the South in 1985. He attended the University of Georgia School of Law where he received a J.D., cum laude, in 1988. Mr. Domenico is a member of Phi Beta Kappa and Omicron Delta Kappa honorary fraternities. He belongs to the Atlanta and American Bar Associations, the State Bar of Georgia, and the Defense Research Institute. Mr. Domenico is active in a number of civic organizations and is a member of the 1995 class of Leadership DeKalb and the Rotary Club of Dunwoody.
The Georgia Association of Business Brokers (GABB) maintains a website that lists hundreds of businesses and franchises for sale throughout Georgia in a variety of fields, including automotive, business services, child care, cleaning, construction, electronics equipment, fitness, flooring, floral, food, gas stations, landscaping, manufacturing, medical, shipping, restaurants, retail, security, signs, and businesses related to the internet.
According to GABB President Greg DeFoor, selling a business is a complicated process with multiple steps and a lot of moving pieces.
“Our broker members are licensed business brokers, whereas everyone in the industry may not be properly licensed,” said DeFoor, who owns DeFoor Business Services, Inc. “GABB members benefit from continuing education, networking, promotion of professionalism and ethics in the industry, research tools, and forms prepared by a team of attorneys specifically for our association.”
“We are the go-to organization for business sales and acquisitions as a result of our dedication to the profession and our members being among the best in the state at what we do,” said DeFoor. “Our members have represented probably over a thousand transactions, and we have a dedicated membership of business brokers, lenders, attorneys and other professionals to assist business buyers and sellers at every step of the process. We work behind the scenes and go mostly unnoticed, but we’re an integral part of Georgia’s business community.”
For more information about GABB, email georgiabusinessbrokers@gmail.com or call 404-374-3990.
Read MoreGABB Ramps Up Social Media
At January’s meeting, GSU’s selling expert Christopher Lemley told us that any company that isn’t using social media for marketing is already five years behind.
Earlier this month, GABB’s Diane Loupe attended a free webinar and heard about a free social media tool called Buffer. Here’s the link: https://bufferapp.com/r/c79611
With this application, GABB was able to post more than 100 updates of interest to our members without spending much time doing it.
Here’s some content we shared:
Rating today’s business buyers. Once the decision to sell has been made, the business owner should be aware of the variety of possible business buyers. Just as small business itself has become more sophisticated, the people interested in buying them have also become more divergent and complex. The GABB blog describes some of today’s most active categories of business buyers.
Cybercrime Hitting Real Estate. Online criminals are targeting the real estate industry and stealing money from unwary buyers. Learn how to protect yourself and your customers.
BizBuySell posted the thoughts of Andrew Cagnetta, CEO of Transworld Business Advisors, one of the largest firms offering business brokerage, mergers and acquisition. He gives his perspective on what to look for when choosing a business broker.
Can Work and Love Mix? The Wall Street Journal offers advice on keeping your career and relationships intact.
Much of the content was reshared from other social media savvy business brokers. What about you? Do you have a Facebook page, a LinkedIn account, a Twitter handle, or a Google Plus page? If you do, how often do you update it? If you don’t, why not?
If you’re not following GABB, we invite you to do so now. And if you do have a social media account, send it to us so GABB can follow YOU!
GABB’s Twitter handle is @GABB_Brokers
The Georgia Association of Business Brokers (GABB) maintains a website that lists hundreds of businesses and franchises for sale throughout Georgia in a variety of fields, including automotive, business services, child care, cleaning, construction, electronics equipment, fitness, flooring, floral, food, gas stations, landscaping, manufacturing, medical, shipping, restaurants, retail, security, signs, and businesses related to the internet.
For more information about GABB, email georgiabusinessbrokers@gmail.com or call 404-374-3990.
Read MoreGABB Donates Toys, Other Items to Foster Children
ROSWELL, GA – Georgia Association of Business Brokers (GABB) president Greg DeFoor delivered several bags filled with more than 50 toys, clothing items, gift cards and other supplies to the Foster Care Support Foundation (FCSF) in Roswell.
The foundation provides free clothing, infant equipment and developmental toys to thousands of children in foster and relative care throughout Georgia. The GABB, the state’s only professional association of business brokers, collected the items during their annual holiday party.
“These supplies, gift cards and toys will go a long way to helping our children during this holiday season and throughout the year.” Rachel Ewald, executive director and founder of FCSF. “Children come into foster care throughout the year with nothing to call their own and rarely have enjoyed a Christmas as our children have. The items we provide them year round help give a little bit of “normal” in an abnormal situation and provides hope that the world may be a little brighter in the near future. We appreciate all of the support we’ve received from GABB to make this happen.”
The FCSF serves basic-care foster children who reside in Georgia’s foster homes, administered by the Division of Family and Children Services (DFCS), and children housed by private agencies. The foundation also serves grandparents raising grandchildren and parents caring for relative’s children for a limited time. The non-profit group partners with Georgia’s DFCS for child referral, verification, foster parent recruiting, and foster parent training.
GABB members represent owners of Georgia businesses in extremely important transactions: the sale of their business. GABB members help owners determine the asking price of their business, create marketing plans and strategies for selling their business, identify and qualify buyers, and have the knowledge and skills needed to help maintain the confidential nature of the process.
If you didn’t make it to the GABB Holiday Gala (and if you didn’t, you missed a wonderful evening and a terrific meal), you can still support the charity. The foundation operates year-round and needs just about everything, from batteries and bike helmets to shampoo and body wash for teens, to volunteer time and monetary donations.
Contact the FCSF by email or call 770-641-9591.
Read MoreNegotiating Commissions is Bad Business for Business Brokers
Negotiating commissions is not in the best interest of business broker’s clients, a leading business broker told the GABB Board.
In August, the board met for a strategic planning session with Andy Cagnetta, owner/CEO of Transworld Business Brokers, LLC., of Ft. Lauderdale, Florida. Andy is also past chairman of the International Business Brokers Association, and a current chairman of the Business Brokers of Florida.
To illustrate his opposition to negotiating commissions, Andy told a personal story. Andy sold a business to a friend, and within 3-4 months, the friend was upside down in the business. Andy decided to discount his minimum commission by $3,000.
While the listing was active, a Florida broker called Andy and told him he had a buyer for the business. But when the other broker heard the amount of the commission, he said, “I’m not showing it to the buyer.” Instead, he showed the buyer a similar business in his office.
“My guy crashed and burned. He never got his money back, and got sued by landlord,” Andy recalled. “I didn’t help my seller.” He explained that the commission is part of the process to motivate brokers in the marketplace to bring deals to the table.
So now, Andy says at every listing appointment, he tells clients we’re not going to negotiate the commission. If they start scratching their heads, he tells them the story and says he’d be doing them a disservice.
“You’ve got to believe that motivating the marketplace is the right thing for you,” said Andy.
Read MoreNine Steps to Better Due Diligence, Closing Deals
Third in a series on Business Brokering
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, Inc.; Kim Romaner, President of Transworld Business Advisors, who has 30 years of corporate and entrepreneurial experience in sales, marketing, operations and technology; and attorney Sarah Wheeler of Moore & Reese.
Miguel Alandete and Jon Kaye of Wells Fargo sponsored the meeting.
Hear the entire panel discussion at the GABB blog.
1. Find out if your clients REALLY want to buy or sell the business.
Have a heart-to-heart talk with your clients before putting the business up for sale, or making an offer on a business, to make sure the buyer and seller are really truly ready to do this. Cold feet will sink a deal, says Wheeler, who represents buyers, sellers or acts as a transactional attorney.
2. Make sure each side has realistic expectations.
Sellers must understand that they will be expected to sign a no-complete contract when they sell. Buyers must understand that if they need financing, they shouldn’t expect to get financing from seller with zero percent interest.
3. Clarify the terms of a Letter of Intent.
A letter of intent, a.k.a. LOI, is typically the beginning of the buying process and signifies a meeting of the mind. Both parties should understand whether the LOI is binding or not, how earnest money will be handled, etc.
4. Take the skeletons out of the closet.
If something is wrong with the business, if there is a liability, it’s a bad idea to hide that fact from a potential buyer. If it comes up in comes up in due diligence, Wheeler notes, the buyer will assume the seller was trying to hide it, and that makes it a lot harder to deal with. Schmerler said he had a sale imperiled because a prospective buyer discovered that a major client was going to discontinue business.
5. Use a GABB lender.GABB-affiliated lenders have experience with business sales, and understand the process. Other GABB affiliates are familiar with the ins and outs of deal making and will make the process smoother.
6. Get franchisors, landlords on board.
If you’re selling a business with a lease, don’t leave the landlord out of the process. Ditto with a franchisor if a franchise is involved. These and other interested parties can make or break a deal.
7. Complete the lender checklist. Lenders typically send out checklists of items they need before a sale can be completed. Sellers should read them and get that information together as soon as possible. Try to educate your client that the money drives the ship, and the closing will happen when the lender is satisfied.
8. Leave enough time for proper due diligence.
Due diligence takes time. Count on at least ten days for a main street transaction, Romaner said, longer for bigger deals.
9. Clarify expectations after the sale.
Sellers often agree to stay on during the transition, but Schmerler said usually the buyer doesn’t want the seller there after the second or third week. The buyer wants employees to view him or her as the new owner.
Hear the entire panel discussion at the GABB blog.
The July 28 panel was the third in a 3-part series of discussions designed to help GABB members improve their businesses. In May, social media expert David Camp discussed effective ways to use quality content and technology to prospect for new clients. The June panel featured three experienced brokers with differing approaches to working with buyers and sellers. Read about the panel and hear a recording at the GABB blog.
GABB meetings begin with guest and member introductions. After introductions, we have a presentation by either a panel or a speaker and then some time for questions. After the presentation we’ll have a few items of association business and then adjourn the meeting at around noon.
There is no cost to attend and there are two parking decks available with free parking adjacent to the facility. For more information about the GABB, contact GABB President Greg DeFoor at gdefoor@defoorservices.com
Read More