It’s a business broker’s worst nightmare.
The sale is complete, documents are signed, and the closing attorney has done his/her work. But somehow the funds have gone missing! Wired funds can be stolen so easily today.
Find out how you can protect yourself and your clients from this fiasco at the Sept. 28 meeting of the Georgia Association of Business Brokers. The meeting will start at 10 a.m. with networking followed by the speaker. The meeting, which is free and open to the public, will be held both online (see Zoom registration directions below) and in person at the meeting space of the Georgia Association of Realtors at 6065 Barfield Rd, Sandy Springs, GA 30328.
A closing should mean that the seller gets paid. Usually, the buyer wires in their down payment, the attorney develops and sends out a closing statement the day before the closing, and everyone agrees with his/her numbers. Unfortunately, a buyer will sometimes send over wiring instructions via email and those instructions get phished and the instructions end up in the wrong place! The buyer or the seller may lose their money; in some cases, millions of dollars.
Brian Harper, Senior Vice President and SBA Division Manager of Atlantic Capital Bank, and Ricky Robertson, Atlantic Capital Bank’s Operational Risk Manager, will speak about best practices from a security standpoint. Find out from the experts how to avoid getting scammed during an electronic transfer.
Ricky Robertson began his career in law enforcement and spent six years as a detective concentrating mostly on investigating white collar crime. During his time in law enforcement, Ricky completed computer forensic investigations and served as the commander of the crisis negotiation team. Over the past 14 years, Ricky has worked in banking in the Information & Corporate Security fields. As Atlantic Capital Bank’s Operational Risk Manager, Ricky’s main job responsibilities include Corporate Security, Information Security, and Operational Risk. He has a Bachelor’s degree in Management Information Systems and earned the Certified Protection Professional certification from ASIS International.
Mr. Harper has more than 25 years of business banking and lending experience and ample experience handling multi-million dollar transactions. He is a member of the Rotary Club of Dunwoody, Junior Achievement, Georgia Lenders Quality Circle, National Association of Government Guaranteed Lenders, the Georgia Association of Business Brokers, Our Lady of Assumption Church, is a coach for Murphey Candler Baseball and a board member of the Georgetown Recreation Center.
To join the meeting via Zoom, please register in advance for this meeting at this link. After registering, you will receive a confirmation email containing information about joining the meeting.
Masks are not required for those attending the meeting in person, but are strongly recommended.
Claudia Wilson, Vice President, SBA Relationship Manager at SouthState Bank, is sponsoring the meeting.
The GABB is the state’s preeminent organization of professionals involved in the purchase and sale of businesses and franchises, and operates the state’s only real estate school devoted to business brokering. For more information about the GABB, contact GABB president Judy Mims at firstname.lastname@example.org or at 404-918-3666; or email email@example.com or text 770-744-3639.
Directions to the meeting:
The GAR headquarters building is a two-story building located in Sandy Springs near the intersection of Hammond Drive and Barfield Road.
Traveling South on 400
Exit at Hammond Drive (Exit #4C), and turn right. At the first light (approximately .25 mile), turn right onto Barfield Road. The GAR building is the third building on the right.
Traveling North on 400
Exit at Glenridge Drive (Exit #4A), and use the right 2 lanes to turn slightly right onto the Glenridge Connector. Travel approximately 1.3 miles and turn right onto Hammond Drive. Travel approximately .25 mile and turn left on Barfield Road. The GAR building is the third building on the right.
Traveling West on I-285
Exit at Peachtree Dunwoody Road (Exit #28) and turn right. Travel approximately .3 mile to Hammond Drive and turn left. Travel approximately .5 mile (you will cross over GA 400), and turn right onto Barfield Road. The GAR building is the third building on the right.
Traveling East on I-285
Exit at Glenridge Connector (Exit #26) in Sandy Springs and turn left. Travel approximately .4 mile to Hammond Drive and turn right. Travel approximately .5 mile, and turn left onto Barfield Road. The GAR building is the third building on the right.
When buying or selling a business, it is critically important that you evaluate the lease. It is a strange phenomenon that otherwise savvy business people will treat leases as a secondary concern. However, problematic terms in a lease can literally force you to pack up a business and move. This would not only be a jarring experience, but a very costly one as well.
Finding a good location is of paramount importance to both the profile and profitability of your business. You may feel that there are more important issues when buying or selling a business. But by the end of this article, you’ll see the wisdom in placing a lease near the top of your “to evaluate” list.
There are three different kinds and types of leases: a new lease, an assignment lease and the sublease. All three of these options are most definitely different from one another and can potentially impact your business in different ways.
The New Lease
A new lease, as the name indicates, is the result of a lease that has expired. That means that the buyer must work with the landlord to establish a new lease. Buying a business only to discover that you don’t have a lease and the landlord isn’t interested in keeping your business at its current location is most definitely a shock that no business owners want to encounter. Buyers should be one-hundred percent certain that they have a lease in place before they buy a business.
Assignment of Lease
The second type of lease is the assignment of lease; this form of lease is quite common. It involves the buyer of a business being granted the use of the location where the business is currently located and operating. Through the assignment of the lease, the seller is able to assign the buyer the rights associated with the lease. Of course, it is important to keep in mind that the seller is not acting as the landlord, but instead, simply has the ability to assign the lease.
The third option for lease is the sublease. The sublease is basically a lease within a lease, and it comes with some important distinctions that must be understood. A sublease generally requires the permission of the landlord and that permission should not be viewed as a “foregone conclusion” or “automatic.”
The bottom line is that no new business owner wants to discover that their new business doesn’t have a home. There are an array of very important issues to work out when buying a business, and it is critically important that buyers never overlook what kind of lease is involved. A savvy seller will highlight what kind of lease they have, especially if the terms are favorable. But buyers should always be proactive and ask questions about the status of the lease and make certain that lease terms are clearly defined.
The post The Often-Overlooked Importance of Leases appeared first on Deal Studio – Automate, accelerate and elevate your deal making.
There is the oft-told story about Ray Kroc, the founder of McDonalds. Before he approached the McDonald brothers at their California hamburger restaurant, he spent many days sitting in his car watching the business. Only when he was convinced that the business and the concept worked, did he make an offer that the brothers could not refuse. The rest, as they say, is history.
The point, however, for both buyer and seller, is that it is important for both to sit across the proverbial street and watch the business. Buyers will get a lot of important information. For example, the buyer will learn about the customer base. How many customers does the business serve? How often? When are customers served? What is the make-up of the customer base? What are the busy days and times?
The owner, as well, can sometimes gain new insights on his or her business by taking a look at the business from the perspective of a potential seller, by taking an “across the street look.”
Both owners and potential buyers can learn about the customer service, etc., by having a family member or close friend patronize the business.
Interestingly, these methods are now being used by business owners, franchisors and others. When used by these people, they are called mystery shoppers. They are increasingly being used by franchisors to check their franchisees on customer service and other operations of the business. Potential sellers might also want to have this service performed prior to putting their business up for sale.
The post Buying/Selling a Business: The External View appeared first on Deal Studio – Automate, accelerate and elevate your deal making.
Most people think of starting a business from scratch, developing an idea, building a company from the ground up. Starting from scratch, however, has its disadvantages including – developing a customer base, marketing the business, hiring employees and creating cash flow … without any history or reputation to rely on.
To avoid these challenges, buying an existing business may prove to be the better solution. Buying an existing business has its advantages – including, but not limited to:
The Business Is Established.
An existing business is a known entity. It has an established and historical track record. It has a customer or client base, established vendors, and suppliers. It has a physical location with furniture, fixtures, and equipment in place. The term “turnkey operation” may be overused, but an existing business is just that, and more. New franchises may offer a so-called turnkey business opportunity, but it ends there. Start-ups are starting from scratch with all the disadvantages stated above.
The Business Has Existing Relationships.
In addition to the existing relationships with customers or clients, vendors, and suppliers, most businesses also have experienced employees who are valuable assets to the company. A buyer may already have established relationships with banks, insurance companies, printers, advertisers, professional advisors, etc., but if not – the existing business/owner does, and they can readily be transferred to the buyer as part of the acquisition.
The Business Isn’t “A Pig in a Poke”.
Starting a new business is just that: “a pig in a poke.” No matter how much research, time, and money you invest, there’s still a big risk in starting a business from scratch. An existing business has a financial track record along with established policies and procedures. A prospective buyer can see the financial history of a business – when sales are high and low, what the true expenses of the business are, and how much money an owner can make, and more. Also, in almost all cases, a seller is more than willing to stay on to teach and work with a new owner – sometimes free of charge.
An Existing Business Comes with A Price and Terms.
As stated above, an existing business has everything in place. The business is in operation and typically has an established selling price. Opening a new business from scratch comes with a great degree of uncertainty and can become a proverbial “money pit”. When purchasing an established business, a buyer knows exactly what he or she is getting for their money. In many cases, a seller is also willing to take a reasonable down payment and then finance the balance of the purchase price.
The “Unwritten” Guarantee.
By financing the purchase price, a seller is saying that he or she is confident that the business will be able to pay its bills, support the new owner, plus make any required payments to the seller.
The post The Advantage of Buying an Existing Business appeared first on Deal Studio – Automate, accelerate and elevate your deal making.
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 PDF of Steve’s presentation: Levinson NDA presentation
Now in his 33rd year of consistent practice experience, Mr. Levinson handles matters in the areas of business law; business sales and acquisitions; business/contract disputes; construction disputes; and alternate dispute resolutions and has so-far closed approximately 1,500 business transactions. He has also previously lectured about business transactions before Georgia Agent/Broker Groups including lecturing before business brokers for state credit. Steve is also an experienced Mediator and Neutral since 2009 and the owner of Northside ADR.
Mr. Levinson received his B.S. in Political Science in 1983 from the University of Miami and SUNY Brockport and earned his law degree from Georgia State University in 1989. Steve was admitted to the Bar in February of 1989 and is admitted to practice in the U.S. Court of Appeals, Eleventh Circuit; the U.S. District Court, Northern District of Georgia; the Georgia Supreme Court; the Georgia Court of Appeals; and the State Courts throughout Georgia.
Beyond his law practice, Steve is the founder, and for many years, host of a weekly Nar-Anon family-peer support group serving those who deal with the addiction issues of loved ones and is also the co-founder and host of the Annual Deane W. Evans Memorial Golf Tournament, raising money to award merit based college scholarships to deserving high school students and doing other charitable work in memory of Deane Evans.
Steve and his wife Alison (high school sweethearts) are 34-plus year residents of Cherokee County and now live in Holly Springs. They are the proud parents of two adult sons, Alex and Aaron. They are active in many charitable endeavors and are longtime supporters and promoters of the Cherokee County Secret Santa Program, Atlanta Harm Reduction, Atlanta Community Food Bank, The Fulton County Canine Cellmates Program, Caring Hands Community (Kingston, NY), The Zaban Couples Shelter, Georgia Overdose Prevention, Friends of the Forlorn and other worthy causes.
The GABB is Georgia’s largest and most respected association of professionals who help people buy and sell businesses and franchises. Our association includes business brokers, lenders, appraisers, attorneys, business consultants and others who help business owners and entrepreneurs in many ways. Please review our directory if you are seeking a business broker or other professional.
For more information about the GABB, contact GABB President Judy Mims at 404-918-3666 or firstname.lastname@example.org, or GABB Executive Director Diane Loupe at email@example.com or text her at 770-744-3639.