Advertising rules for Business Brokers
Monica Gilroy, esq., a founding principal of The Gilroy Firm, spoke to the Georgia Associations of Business Brokers on Oct. 30 about rules governing advertising businesses for sale and real estate.
Ms. Gilroy is the firm’s managing partner and has more than 25 years of experience practicing law. She is an active partner in the Litigation Department as the focus of her national litigation practice includes all aspects of real estate litigation.
Linked here is her presentaton. Advertising For Business Brokers – October 30 2018
Ms. Gilroy remains an active partner in the Litigation Department as the focus of her national litigation practice includes all aspects of real estate litigation, including property management issues, fair housing, foreclosure and title disputes, broker and agent liability defense, mortgage fraud-related litigation and civil and commercial contract disputes. She also leads the Default Department providing national foreclosure, bankruptcy, and loss mitigation and eviction services. During her career, Ms. Gilroy has served as the litigation liaison for leading lending institutions as well as managed their national bankruptcy litigation program. She continues to serve as counsel for many national and local banks, mortgage companies and real estate industry lenders and leaders. She regularly assists closing attorneys, real estate agents, property managers, title companies and brokers when title or other contract issues arise. She practiced for several years in the areas of estate and trust litigation and serves regularly as a Special Master in Fulton County. Ms. Gilroy has extensive lead counsel trial experience and frequently appears in all of the state and federal courts of Georgia, including the state and federal appellate courts. She is also a member in good standing with the United States Supreme Court.
Ms. Gilroy has conducted hundreds of jury trials, bench trials, arbitrations and mediations and regularly argues dispositive motions of all kinds.
Ms. Gilroy is the immediate past Chair of the Real Property Law Section (“RPLS”) of the State Bar of Georgia, which is the largest section of the state bar. She previously served as the Editor of the RPLS Newsletter. A long-standing member of the State Bar of Georgia, she was appointed by the last five Presidents of the State Bar to serve on the Programs Committee.
In addition to the numerous articles, papers and publications over her career, she is a contributing writer to Foreclosure Law and Related Remedies: a State-by-State Digest which is published by the American Bar Association. She recently was published by Thompson Reuters in the book, Inside the Minds: Mortgage and Finance Fraud Litigation Strategies, 2015 ed.
In 2014, Ms. Gilroy also was selected to serve on the American Land Title Association (ALTA) National Education Committee, one of only a dozen members who write the curriculum for ALTA members. Recently, she was honored to draft an Amicus Brief on behalf of ALTA for a case pending in the Georgia Supreme Court.
Ms. Gilroy enjoys membership with the Lawyers Club of Atlanta, the Georgia Women’s Lawyers Association, Georgia Mortgage Bankers Association, the Atlanta Board of Realtors and the Atlanta Volunteer Lawyers Foundation. She speaks and teaches on a regular basis at the state and national level to attorneys, real estate professionals, property managers, and real estate brokers and agents on litigation and real estate related topics. Ms. Gilroy holds an AV-peer review rating with Martindale Hubbell. She is a peer nominated Georgia Super Lawyer for three years running in the practice area of real estate.
Ms. Gilroy is a longtime volunteer for the Girl Scouts of Greater Atlanta, serving as a group leader and teen mentor, as well as a volunteer coordinator for the Fulton County Public School System. She is also an active volunteer educator in her church in Johns Creek, Georgia.
Read MoreAdvertising a Business for Sale Without Divulging Too Much
By Peter Siegel, MBA, Founder of BizBen.com
A west coast businessman learned the hard way about revealing too much in a business for sale advertisement.
According to an article written for BizBen, the seller thought it was important to give as much information in the ad as possible, so only people specifically interested in his business would respond. But when people started visiting his store during business hours to ask for more details, he realized his mistake.
Ruining the confidentiality about your sale is the largest problem with providing too many details in the business for sale ad/posting. You could also discourage or confuse prospective buyers with some advertised facts.
Business Broker Peter Siegel, MBA, the Founder & Senior Advisor at BizBen.com, suggests these few guidelines to ensure that a business-for-sale advertisement will attract interest without working against the objectives of the advertiser.
1. Location is important to many buyers and probably should be included, using a very general description, in most ads offering a business for sale. People who may be potential buyers probably want to know whether the manufacturing company is in a new and modern industrial park or an old factory setting near downtown. The ad for a retail business in Georgia should let readers know if the company is in a suburban shopping mall or a part of the central business district. One strategy to give important but non-revealing information, is to mention the neighborhood in a large city–sporting goods store in south Fulton County; or just name the county, in the event the business can be identified simply with information about its city.
2. Contact information should not, of course, be easily associated with the business. One seller didn’t know how callers responding to his furniture store for sale ad/posting were able to determine the identity of the company. The ad included the number for his home phone, rather than the store’s phone number. Clever buyers simply used a reverse directory to discover his name using the phone number, then conducted an online search using his name and the term “furniture store.” Here’s where hiring a business broker will help preserve seller confidentiality. Prospetive buyers will call the broker instead of the owner.
3. When an ad states that “Complete information will be provided to qualified buyers,” potential buyers should understand that they’ll have to supply their information to the seller if they want to know details about the company for sale. Serious buyers ready to satisfy the seller’s confidentiality requirements will respond to the ad expecting to agree to a non-disclosure document, and to provide requested personal information to the seller. Those who are more curious than serious will probably not respond to the advertisement.
4. Detailed information in ads may or may not make the phone ring. Revealing that a restaurant for sale generates $5,000 in monthly earnings to the owner may result in responses from those who want to make that amount of money. That’s too much information, however, to attract the buyer who needs to generate $7,000 to $8,000 per month in earnings. Yet that buyer’s response to the ad would be welcomed, because the seller would have the chance to explain the potential is there for an active owner to quickly boost earnings by 50%.
Whether or not to provide earnings figures, rent costs, years remaining on the lease, asking price, annual growth rate and so forth, is up to the seller. He or she should understand that while certain facts included in the posting might provoke responses, that information is likely to discourage others from calling or emailing the seller to express and interest and request more information.
One possible strategy is to run the ad with information for a couple of weeks, then change it by reducing the detail before advertising again.
This article originally appeared on the BizBen website.
Peter Siegel, MBA is the Founder & Senior Advisor (ProBuy & ProSell Programs) at BizBen.com (established 1994, 8000+ CA businesses for sale, 500 new & refreshed postings/posts daily). Get expert advise when placing an ad to sell a California business. Reach him at 866-270-6278 to discuss strategies regarding buying, selling, (or financing a puchase of) California businesses.
Read MoreUGA Small Business Development Experts To Speak Sept. 25
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 and will be held at the Atlanta Realtors Center at 5784 Lake Forrest Dr. NW, Atlanta, GA 30328. The meeting begins at 10:30 a.m., preceded at 9:45 a.m. by a free light breakfast and networking session sponsored by GABB affiliate and board member Kim Eells, Vice President and Business Development Officer of Government Guaranteed Lending for Renasant Bank.
The Small Business Development Center, a Public Service and Outreach Extension of The University of Georgia, is funded in part by the U.S. Small Business Administration (SBA). It provides tools, training and resources to help small businesses grow and succeed. Designated as one of Georgia’s top providers of small business assistance, the SBDC has 17 offices ranging from Rome to Valdosta to serve the needs of Georgia’s business community. Since 1977, the SBDC’s network of partners has helped construct a statewide ecosystem to foster the spirit, support, and success of hundreds of thousands of entrepreneurs and innovators. The University of Georgia Small Business Development Center is nationally accredited by the Association of SBDCs.
Mr. Patterson, an area director with the Small Business Development Center at Georgia State University, has extensive financial industry experience that includes leadership roles in credit administration, commercial lending, operations management, regulatory compliance, and audit administration. His expertise includes loan proposal and business plan preparation, cash flow management, budgeting, and customer satisfaction. He also has brokerage and financial planning training. He has an MBA from Brenau University, was President and Board member of the Bank of Hiawassee, Senior Vice President at Nantahala Bank & Trust and Executive Vice President of United Community Banks. He is the past Lt. Governor and Past President of the Rotary Club, past Local Board Chair of North Georgia Technical College and past Chairman of the Board of the Habersham County Chamber of Commerce.
Ms. Cooper has 20 years of experience either working with small business owners or being a small business owner herself. Prior to joining the SBDC, Ms. Cooper was an advertising representative in the yellow page and radio industry. In 2005, after moving to Georgia, she opened her first business in Duluth, Ga., with the guidance and expertise of the SBDC. She has attended GrowSMART and been a client of the SBDC throughout the start-up and expansion phase of her adult care facility. In 2011, she was recognized by Access to Capital for Entrepreneurs (ACE) Entrepreneur of the Year and in 2017, Outstanding Woman of the Year. Aysha has been an active member of her community as a graduate of Gwinnett Neighborhood Leadership Institute, a board member for Snellville Tourism and Trade and Friends of Gwinnett County Seniors. Her interests include marketing, operations and franchising.
The GABB is an organization of experienced professionals who work with Georgia business owners to help them in the process of evaluating, marketing, financing and selling their businesses. They also work with business buyers including many individuals who have decided not to re-enter corporate America, but want to become their own bosses by purchasing and operating a Georgia business.
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.
If you are NOT a GABB member, please fill out this form to let us know you’ll be attending the meeting.
Read MoreBiz Chronicle Publisher spoke to GABB Aug. 28
David Rubinger, publisher of the Atlanta Business Chronicle, spoke on Aug. 28 to the state’s largest organization of professionals who broker business sales and purchases, the Georgia Association of Business Brokers.
The GABB meeting, which is free and open to the public, was held at the Atlanta Realtors Center at 5784 Lake Forrest Dr. NW, Atlanta, GA 30328. The monthly meeting was sponsored by GABB affiliate Andrew Moore, CPA, of Frazier and Deeter.
The publisher’s presentation is here. AtlBizChronPPT
The GABB is an organization of professionals who work with Georgia business owners to help them in the process of evaluating, marketing, financing and selling their businesses. They also work with business buyers including many individuals who have decided not to re-enter corporate America, but want to become their own bosses by purchasing and operating a Georgia business.
David Rubinger has spent the past 30 years as both an award-winning journalist and corporate communications executive. Two years ago, he returned to his roots at Atlanta Business Chronicle to become its Market President and Publisher. The Chronicle is one of the largest and most successful business journals in the United States. It is the flagship for American City Business Journals Inc., which has business journals in 43 markets throughout the country.
Mr. Rubinger began his career in Atlanta with Atlanta Business Chronicle in 1989 to cover banking, investment, and real estate industries. He later served as managing editor and editor of the Chronicle until he joined Ketchum Public Relations as its senior vice president in late 1998. In 2003, he was tapped by Equifax to lead the company’s global communications team, and in 2008 struck out on his own to start Rubinger Inc., a boutique corporate communications firm before returning “home” to the Chronicle in 2015.
A native of New York City, Mr. Rubinger is a graduate of Trinity College in Hartford, Conn., where he received a B.A. in government. He is a member of Leadership Atlanta, the Emory University Board of Visitors and Emory’s Center for Ethics. David is on the board of the Metro Atlanta Chamber and the Atlanta Convention and Visitors Bureau. He lives in Ansley Park with his wife, Hedy, who chairs the healthcare practice at law firm Arnall Golden Gregory. They have four children: Jill, who just completed her second year at UVA law school; Scott, who completed his junior year at UT Austin; and Adam and Eric, who are rising 11th graders at the Westminster Schools.
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 MoreTax Credits Can Lower the Tax Bill From Selling a Business
By Ben Zachariah, Director of Tax Credit Investments, Monarch Private Capital
The sale of a business can generate substantial tax liability. But by investing or purchasing transferable tax credits at a discount, the tax burden can be reduced.
Tax credits are created by governments to incentivize certain business activities that are deemed socially beneficial to communities. Historic preservation, low income housing and renewable energy are all activities that the Federal Government has promoted through the issuance of Federal Tax Credits. To further incentive these activities, many states have created tax credits that offset state taxes in a particular state (state income tax, insurance premium tax, franchise and excise tax). State tax credits are created by individual state’s legislature and vary state-to-state. Tax credits are a direct reduction of tax liability, not a deduction and are not a “loop hole” put together by creative accountants.
Georgia Tax Credits
In Georgia, there are film and entertainment tax credits, low income housing tax credits (LIHTC), and historic rehabilitation tax credits. Georgia’s film industry is estimated to have had a $6 billion impact on the economy in 2015, based on a multiplier.
FILM:
For the Georgia Film, Television and Digital Entertainment tax credits, production companies may be awarded a tax credit up to 30 percent of dollars spent on production in Georgia. If a production company has little or no Georgia tax liability, it can directly transfer or sell its tax credits to another entity or individual. These credits are purchased through a transfer agreement between buyer and seller where price and other matters are stipulated. A transfer tax form, IT TRANS, is filed with the Georgia Department of Revenue to record the transfer. Monarch Private Capital (MPC) acts as a broker between the film company and the buyer. MPC vets all film credit projects to make sure the studio or production company’s paperwork is in order and all certifications have been met and received from the state (DOR). For Georgia film credits, the buyer can purchase credits in the current year, but use them in prior years, as far back at the year the credit was generated.
LIHTC:
The Georgia Low Income Housing Tax Credit Program was established in 2000 and allocates state tax credits to investors and developers of qualified low-income housing developments who reserve all or a portion of their units for low-income tenants. MPC invests in partnerships with project developers to receive the tax credits generated by the low-income housing developments. Thereafter, MPC creates a fund that contains the tax credits. Investors invest in the fund to receive an allocation of GA low income housing tax credits. The credits are reported through a K-1 (partnership tax form). The state tracks all developments earning LIHTCs and which are tracked from developer, through the fund, up to the end user/investor. For LIHTC, the investor must invest in the current tax year to receive the credit. If the taxpayer has excess credits, they may carry them forward for three additional tax years.
FEDERAL:
Federal investment tax credits are offered by the United States government to promote specific types of developments in various fields. Federal tax credits are generally suited for corporations that carry an annual income tax liability of $500,000 or more. Corporations investing in federal tax credits will typically see a substantial internal rate of return on their investment. Additionally, individuals with substantial passive income may also benefit from federal tax credits.
Our team at MPC works with historic rehabilitation, Federal Solar Investment Tax Credit (ITC) and affordable housing federal tax credits. In some cases, the provisions may mirror state regulations, in some cases, not.
In addition to the tax benefits of tax credits, many such investments offer opportunities for positive public relations. When investing in solar tax credits, you help reduce the negative impacts on the environment through the creation of clean power. When you invest in historic tax credits, you restore a lifelong part of the community to vitality and create a new future for historically significant buildings. When you invest in affordable housing credits, you prove to your community that you care about their well-being by creating affordable quality homes. When you invest in film credits you are supporting the arts and entertainment industry which creates thousands of new jobs and boost, the local economy.
Contact us to learn more about how to benefit and make an impact today.
Ben Zachariah is a GABB affiliate and serves as Director of Tax Credit Investments for Monarch Private Capital. Zachariah helps businesses and individuals identify, underwrite, and invest in federal and state tax credit investment opportunities, which afford them the ability to effectively reach and optimize their tax and wealth planning goals. Zachariah works with wealth managers, RIAs, CPAs, attorneys, and advisors to assist them in driving value to their client’s overall financial plans and strategy. Zachariah is a licensed CPA in the state of GA.
Zachariah specifically focuses on individuals with liquidity events, real estate investors, hedge fund managers, private equity managers, high-income earners in general ($1M plus of net taxable income), banks, profitable portfolio companies with cash flow, financial institutions and trust companies, insurance companies, and corporations with federal and multistate federal tax liabilities.
Zachariah has facilitated the placement of over $70M federal and state credits since joining the firm in 2016.
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