After decades of hard work, selling your business can be an exciting and rewarding time. Yet, many business owners overlook some important legal matters associated with sales. In this article, we’ll explore three of the most significant legal mistakes sellers make when selling a business. 1. Use an NDA The first critical mistake that business owners make is skipping a non-disclosure agreement. Before disclosing to any buyers that a business is on the market, a business owner should a …
Selling a business is a complex process that experienced business brokers know how to navigate. Here are common mistakes made by business sellers that can, in many cases, torpedo a sale. 1. Not knowing what the business should sell for One of the most costly errors a business owner can make is not knowing the approximate value of his or her business prior to entering the selling process. Although the marketplace ultimately determines the final price, an owner needs to determine a reasonable aski …
When buyers are looking to make a purchase, the most important step they can take is to perform due diligence on both the business and the seller. And yet, many sellers don’t their due diligence on buyers. Deals fail all the time. Sadly, this means that all parties lose a tremendous amount of time and effort. Additionally, sellers not only waste time, but often lose money due to business disruptions while working with a prospective buyer. Let’s look at a few warning signs that …
Despite the challenges posed by the pandemic in 2020, many Georgia business brokers continued to sell more than a million dollars worth of businesses. GABB board member Tanya Nebo and six members of the GABB Million Dollar Club offered a wide variety of advice on Tuesday, Feb. 23, during a panel discussion of how to buy and sell businesses during a pandemic. To view their comments on how they prospered in 2020, watch this video posted on GABB’s new YouTube channel. Among the 2020 members of the …
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 …
There is a direct relationship between the asking price and the amount of cash on the table at the time of the sale. Buyers and sellers alike should keep one fact in mind. Most businesses involve some level of seller financing. It is customary for both buyers and sellers to have concerns regarding this kind of financing; after all, sellers don’t want to take their businesses back from the buyer. Buyers want to generate enough money to help the business thrive and make a l …
The Corona Close: How to Prospect Effectively in Today’s New Market Sales coach Dan Jourdan says now is a great time to be reaching out to prospective customers. Why? “Everybody is waiting for something to happen,” Jourdan of “Sales Arbiter” told attendees at the Sept. 15 virtual meeting of the Georgia Association of Business Brokers. View a recording of the meeting at this link. While getting referrals is always a great way to get new clients, Jourdan — or “The Deej” as he is known — said col …
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 selling a business, your business broker or M&A Advisor will likely create a Comprehensive Business Review, or CBR. This comprehensive document can then be presented to prospective buyers once they have signed all necessary confidentiality documentation. It is essential that this document builds trust between both parties, as this will go a long way towards achieving a successful deal. Be Honest The bottom line is that your CBR will be 95% positive. The majority of t …
Business brokers need to learn many things to effectively represent their clients. But how good are they at selling? Salesmanship will be the main topic of the Aug. 18 virtual meeting of the Georgia Association of Business Brokers. Business Coach and GABB Member Russ Hall will lead the discussion among experienced business brokers about the importance of selling skills in the profession. Registration at this link is required to join the meeting, planned for Tuesday, Aug. 18 at 10 a.m. Hall …
There is no doubt that the COVID-19 situation seems to change with each and every day. The disruption and chaos that the pandemic has injected into both daily life and business is mirrored in the government’s response. In this article, we’ll turn our attention to an overlooked area of the government’s pandemic response and how businesses can use a whole new lending platform to navigate the choppy waters. As the pandemic continues, you will want to be aware of the Main Street Lending …
In today’s business climate, reviews are the differentiator. Years ago, people commonly asked for references when they were vetting a product or service. But these days when people are searching for a local business to work with, they are likely to conduct research on their own and read online reviews. Google reviews can give businesses a big credibility boost without having to spend a dime. Let’s take a look at some of the key benefits. Increased Credibility & Trust …
When contemplating the sale of a business, an important option to consider is seller financing. Many potential buyers don’t have the necessary capital or lender resources to pay cash. Even if they do, they are often reluctant to put such a hefty sum of cash into what, for them, is a new and untried venture. Why the hesitation? The typical buyer feels that, if the business is really all that it’s “advertised” to be, it should pay for itself. Buyers often interpret the sell …
By Peter Siegel MBA, BizBen Founder, ProBuy, ProSell, ProIntermediary Programs I was speaking with a prospective business buyer the other day – he had just signed up to get business purchase financing. He said he wanted the business; however, he was uncomfortable putting down a 10% deposit for a $350,000 business. He asked if he could lower the deposit requirement to $5,000. I asked a business broker that day on the phone what his opinion was on earnest money deposits for escrow/bulk sale accoun …
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 …
What do your customers/clients say about your or your company when you’re not around? What do the employees say about you or your company when you’re not around? Those things represent your external and internal brands, says brand guru Skot Waldron, and they can help or hurt you. Waldron spoke on June 30 to the Georgia Association of Business Brokers about building brand loyalty. At the end of the day, we all crave loyalty, Waldron says. We want loyalty from our family members, loyalty from our …
If you’re trying to sell a business, expect bankers to scrutinize the deal more closely in the wake of the COVID-19 pandemic. Ryan Stoll, an SBA Banker at Cadence Bank, N.A. specializing in Franchise, Business Acquisition and Real Estate Lending, spoke to the GABB’s guest on Tuesday, June 16, about SBA lending and the Paycheck Protection Program (PPP) program. Cadence Bank, along with many others, is asking clients to get help from their CPA’s to gather the information they will need to apply fo …
There are many things that you should be doing to deal with the COVID-19 pandemic. At the top of the list is to be proactive. Now is the time to be thinking about how best to position your business after the economy has returned to something near normal. Now is not the time for self-pity. In fact, not preparing for the relaunch of the economy will cost you. In David Finkel’s recent Inc. article entitled, “10 Things Every Small-Business Owner Needs to Do to Dea …
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 …
Russ Hall, Action CoachExperienced business brokers know that there’s sometimes a gap between when a business owner wants to sell their business and actually having a business prepared to sell. The Georgia Association of Business Brokers held its March 31 meeting online with more than 60 participants. If you missed the meeting, you can view the recording here. Business coach Russ Hall, our guest speaker, came to us using the Zoom virtual meeting platform. Mr. Hall offered advice on how small bus …
By Chris Fonzi, GABB Affiliate member and Principal of Logic Environmental, Inc. Ask me about the worst-case scenario. Everyone with a contaminated piece of real estate does. How much can it cost? How long can it take? If you’ve had a deal torpedoed by an environmental contamination issue, the worst-case scenario was the veiled threat, the elephant in the middle of the closing table. In fact, contamination issues have generally become increasingly manageable during the past 20 years. Lenders hav …
When preparing to leave a company as the business owner, most people tend to take on their exit in the fashion that’s most fitting for them. Some help to prepare their successor for the role before leaving, and some just decide to sell the company as a whole and settle for money. But how many can say they’ve created an exit strategy based on the reasoning for their exit? The Atlanta Small Business Show recently interviewed former GABB president Michael Ramatowski to learn the significance of imp …
Thinking about whether or not you are ready to sell your business is an important question. It’s something that every business owner will have to address at some point. Importantly, there are far too many pieces in this particular puzzle to wait until the last minute to prepare an exit plan. You’ll want to begin the process sooner by asking yourself some key questions. Determining Value First, you’ll need to determine the actual value of your business. It is a harsh truth …
Business acquisitions are red hot, and all kinds of businesses are being snapped up. Some people are under the impression that only large businesses are being acquired, but this is far from the reality of the situation. It would surprise many to learn that so much of the “action” is, in fact, small businesses buying other small businesses. In his Forbes article, “Take Advantage of the Golden Age of Business Acquisitions,” author Christopher Hurn explores …
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 …
Steve Mariani spoke to the GABB on Feb. 19, 2020. Photo by Roger Easley. Stephen “Steve” Mariani, owner of Diamond Financial Services and a board member of the International Business Brokers Association (IBBA), spoke to business brokers this week about compiling a listing or offering memorandum. In a lively talk, which you can hear online, Mariani talked about the top things that buyers look for in a business-for-sale listing, and what lenders look for in an offering memorandum, a detailed descr …
Determining when it’s finally the right time to sell can be a tricky proposition. If you are thinking about selling your business, one of the best steps you can take is to contact a business broker. A good business broker will have years, or even decades, of proven experience under his or her belt. He or she will be able to guide you through the process of determining what you need to do in order to get your business ready to sell. One major reason you should contact a business …
When the complicating variable of family is added to the equation of selling a business, the situation can get rather messy. Family usually complicates everything and businesses are, of course, no exception. Ken McCracken, a family business advisor with KPMG in Ireland, recently explored the complexities so often associated with family businesses in an article for the Irish Times. In the article, “Family business: to sell or not to sell?” 6 questions to help you make the right decisi …
It is never too early to start thinking about what tax structure you should use when it comes time to sell your business. A simple, but undeniable, rule of life is that taxes matter and they can’t be overlooked. Tim Fries, a managing director at Lakeview Capital, advisor to the Founders and head of US business development, has written an excellent and quite detailed overview article on what tax issues business owners need to consider before selling their business. His art …
Marie Fratoni Marie Fratoni, a business coach, human potential expert and master networker, will speak on Tuesday, Jan. 14, to the Georgia Association of Business Brokers. Ms. Fratoni, CEO of Get Clients Everywhere, will talk about how entrepreneurs can cultivate fulfilling and profitable professional relationships through sound business-building strategies. The GABB is the state’s premier organization dedicated to professionals who buy and sell businesses in Georgia. The meeting will begin at 1 …
Georgia Association of Business Brokers can now post business-for-sale listings on the new GABB website. But, as BizBuySell points out, it’s important to create a well-written online listing. You want to attract qualified buyers. According to BizBuySell’s latest demographic survey, business buyers tend to be college educated and earn over $100,000 per year. Buyers are more likely to respond to listings with these specific attributes, according to the website. 1. Specify a location. Most buyers s …
Negotiations can be tricky affairs. One wrong move can undo a tremendous amount of work. In negotiations, it is best to take a moment and think about the other party’s motivations. What are their needs and how best can you meet them? Understanding where your buyer is coming from increases the chances of a successful negotiation. What Appeals to Most Buyers? When it comes to selling a business, you likely will not know your buyer personally. This means that you will not know what they value …
M&A purchasing agreements can have a lot of moving parts. Meghan Daniels, managing editor of Axial, outlined the components of such agreements in. “The Makings of the M&A Purchase Agreement” Components of the Deal Mergers and acquisitions (M&A) are transactions in which the ownership of companies, other business organizations, or their operating units are transferred or consolidated with other entities. Purchase agreements cover everything from definitions and executive provisi …
By Eric Gagnon, CBI You may not think that coping with a health challenge compares to selling a business, but former GABB President Eric Gagnon found similarities and grew. Eric and his wife, Robin, are the founders of We Sell Restaurants, the nation’s largest restaurant firm focused on selling restaurants. Both are GABB members and members of the 2019 Million Dollar Club. Many of you may not know that I have experienced three ear surgeries in the last 12 months, all of which have left me …
The old saying, “an ounce of prevention is worth a pound of cure,” most definitely applies to any business owner that believes he or she will someday want to sell his or her business. The bottom line is that every business owner has to transition out of ownership at some point. In a recent Inc. article, “Four Mistakes That Could Lower Your Business’s Value and Weaken Its Salability,” author Bob House explores 4 mistakes that could spell trouble for business owners looking to sell. No doubt Hou …
Every year many great deals, deals that would have otherwise gone through, are undone due to a failure to properly use and follow confidentiality agreements. Not adhering to this essential contract can lead to a myriad of problems. Employees discover a business is going to be sold and quit, competitors learn the business is for sale, or key customers learn of the potential sale and take their business elsewhere. Such issues can block a sale from successfully going through. …
By Peter Siegel, MBA, Founder and President of BizBen.com. Almost everyone who owns a company wants to put it up for sale sooner or later. And if the owner doesn’t have employees or family members ready to put up the money and take over the business, the owner must find a buyer in the business-for-sale market. Sadly, only one-third of the hopeful sellers in this market will be successful. That means two-thirds of owners unable to connect with a buyer will ultimately have to close the busin …
Succession planning is something that many business owners fail to think about; however, it turns out there are benefits to succession planning that might not be immediately obvious upon first glance. In this article, we’ll explore a recent Accountancy Daily article, “Succession Planning for Business Owners,” which details the wisdom and benefits of succession planning. Accountancy Daily polled 500 SME owners and uncovered a variety of interesting facts. At the top of the list is that one-thir …
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 …
By Robin Gagnon, GABB Business Broker Robin Gagnon When selling a restaurant or other business, the potential or opportunity for the future is seen as a reason that a buyer should invest. That’s because a business’s future prospects make the listing more attractive to buyers. The buyer will see the listing as a better long-term opportunity. When it comes to pricing the business for sale, however, Business Brokers must set a price according to common lending practices and standard valuation met …
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 …
Selling a business is a complex process that boils down to this: Finding the right buyer. In a recent Forbes article, “Ready to Sell Your Business? Follow These 3 Tips to Find the Best Buyer,” author Serenity Gibbons, a former assistant editor of the Wall Street Journal, outlines the multifaceted process of selling a business. Gibbons cautions small business owner to thoughtfully consider when, how, and to whom you sell your stock. “Create a for-sale plan that sets up the business for long …
The 65-year old owner of a multi-location retail operation doing $30 million in annual sales decided to retire. He interviewed a highly recommended intermediary and was impressed. However, he had a nephew who had just received his MBA and who told his uncle that he could handle the sale and save him some money. He would do it for half of what the intermediary said his fee would be – so the uncle decided to use his nephew. Now, his nephew was a nice young man, educated at one of the top busin …
If you’ve never bought or sold a business before, then the factors that drive and influence business valuations likely seem a bit murky. In a recent Divestopedia article from Kevin Ramsier entitled, “A Closer Look at What Drives and Influences Business Valuations,” Ramsier takes a closer look at this important topic. Business brokers and M&A advisors play a key role in helping business owners understand why their business receives the valuation that it does. No doubt, the final assessed value …
By Peter Siegel, MBA Peter Siegel, MBA I chat with various business owners every day and hear of a variety of businesses in nearly every imaginable business sector. The businesses that give the best first impression are those that appear well organized, are relatively clean, and where the business owner has books and records readily available. This gives me an indication that the business is most likely well run and that the owner has given some thought and preparation to the idea of selling his …
The first step towards successfully selling a business is finding a qualified business broker to work with. Sellers should also ask themselves important questions about their motivations for selling. Freelance writer Troy Lambert outlines some crucial questions in an article published recently by Unbound Northwest and the Good Men Project. 1. Are you ready? Such a simple and powerful question: “Are you ready?” For example, are your financial reports ready to show? If you’re like most business …
The number of small business transitions continues to be strong for the first quarter of 2019, according to a leading market analysis. In fact, despite a small decline, small business transitions remain at historically high levels. Looking at the Statistics According to a recent BizBuySell article entitled, “Number of Small Businesses Changing Hands Dips Slightly, But Market Remains Ripe for Buyers and Sellers,” now is still very much the time for both buying and selling a business. It is true …
Selling your business can takes as much planning and careful consideration as starting it does. The Atlanta Small Business Network recently interviewed former GABB president Michael Ramatowski, Managing Partner at RamBizGroup Business Solutions, in the ASBN studios. Considering the most common reason for selling a business is due to retirement, Michael says it’s important that a business owner get the most out of selling their business. He said that’s why members of the Georgia Association of B …
The IBBA and M&A Source Market Pulse Survey Report for the fourth quarter of 2018 has a range of interesting insights. The survey’s purpose is to provide an “accurate understanding of market conditions for businesses being sold in Main Street (values $0-$2MM) and the Lower Middle Market (values $2MM-$50MM). This national survey was designed as a tool for business owners and their advisors and has the support of both the Pepperdine Private Capital Markets Projects and the Pepperdine Graziadio B …
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 …
If you own a small business and haven’t thought about succession planning, you should. Brad Cherniak Co-Founder and Partner of Sapient Capital Partners, a Toronto-based advisory firm, examined the importance of succession planning in a February 20, 2019 Divestopia article, “All Companies Need to Look at Succession Planning.” Owning and/or operating a business can be a great deal of work, but it is imperative to take the time to develop a succession plan. Succession Planning is for Businesses of …
The economy is red hot, and that fact is translating into lots of businesses being sold. However, it is possible that this record-breaking streak of sales could cool down in the near future. Entrepreneurs who are considering selling their companies say they’re worried about the future of the economy, according to an article posted on Inc. in February, 2019. Some 319 business brokers, mergers and acquisitions advisors were surveyed by Pepperdine University’s Graziadio School of Business, the Inte …
A business plan, which projects 3-5 years ahead, is your road map for your business. It outlines how a company plans to reach yearly milestones, including revenue projections.
Selling a business can be an exciting and rather lucrative time. But going through the sales process means embracing the notion that you’ll have to be very prepared for whatever might be thrown your way. A key aspect of preparing to sell your business is to know what types of buyers you’re likely to encounter. It is only logical to anticipate the types of buyers you may be dealing with in advance. That will allow you to plan how you might potentially work with them. Remember that each buyer …
How should the purchase of a business be structured? This is a point that you’ll want to address early in the sale process. For most people, buying or selling a business is one of the most, if not the most, important business decisions that they will ever make. Therefore it is vital not to wait until the last minute to structure your deal. Let’s turn our attention to the most significant questions that you need to answer when entering the sales process. 1. What is My Lowest Price? Ask yourself …
UGA Small Business Development Center Consultant Daniel McCoy Just before retirement is not the best time to prepare your business to sell for an attractive price. Savvy business owners spend years thoughtfully preparing to transition out of business ownership. UGA Small Business Development Center consultant Daniel McCoy discussed ways that small businesses can prepare for the day when they want to sell their business. Here’s a link to an audio recording of Mr. McCoy’s remarks. His PowerPoint P …
Loren Schmerler, former GABB Vice President If you want to sell your business, be sure to check the items on this list prepared by Loren Schmerler, CPC, APC the founder and president of Bottom Line Management. Loren is a founding member of the Georgia Association of Business Brokers as well as an experienced business broker. 1. Do you really 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 assi …
Business appraisals are not one-dimensional. In fact, a good business appraisal is one that factors in a wide range of variables in order to achieve an accurate result. Indisputable records ranging from comparables and projections to EBITDA multiples, discount rates and a good deal more are all factored in. While an appraiser may feel that he or she has all the information necessary, it is still possible they have overlooked key information. Business appraisers must understand the purpose of the …
Business Buyers and Sellers and their Brokers may face an unusual stall on closing their deals due to the federal government shut down. GABB President Dean Burnette says, “I’m in the final stages of closing a deal right now. Fortunately, our SBA Lender got an authorization number the night before the shut down so we will receive our funds.” Experienced brokers understand that it takes time to work through all of the steps it takes to close a business deal. However, if you are a buyer or a seller …
Most business owners don’t know what real estate options are available to them when it comes time to sell the company. Understanding the value of the real estate and the tax liabilities associated with it is important, according to a December 2018 article in Divestopedia describing options for business real estate when selling a company. Understanding one’s business real estate options will ultimately help in achieving “the goals desired in a transaction.” There are two main options: Sell everyt …
The process of selling a business can be very complex. Whether you’ve sold a business in the past or are selling a business for the very first time, it is imperative that you work with an expert. A seasoned business broker can help you navigate through what can be some pretty rough waters. Let’s take a closer look at four issues any seller needs to keep in mind why selling a business. Number One – Overreaching If you are both simultaneously the founder, owner and operator of a business, then the …
By Peter Siegel When the owner of a convenience store, bakery, restaurant, janitorial service company or other small Georgia business is ready to retire, it usually is a good idea to hire a business broker to sell business assets. Thats because the sale will be part of a package that includes goodwill also called going business value, according to Peter Siegel, MBA, the Founder & Senior Advisor at BizBen.com, a major website for the sale of California businesses. Sure, the seller MAY be abl …
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 …
There are a myriad of reasons why the sale of a business doesn’t close successfully; these multiple causes can, however, be broken down into four categories: those caused by the seller, those caused by the buyer, those that just happen (“acts of fate”), and those caused by third parties. The following examines the part each of these components can play in contributing to the wrecked deal: The Seller 1. In some instances, the seller doesn’t have a valid reason for entering into the sale process. …
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 …
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 abo …
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 …
GABB Board members met with Georgia Real Estate Commission officials. Front left, Deputy Real Estate Commissioner Craig Coffee. Commissioner Lynn Dempsey and GABB board member Judy Mims. Back, GABB secretary Dean Burnette, GABB President Mike Ramatowski, board member Jeff Merry and affiliate member Kim Eells. If you’re contemplating buying or selling a business in the Peach State, be sure to check whether the business broker you’re considering using has a valid Georgia real estate license. Some …
Banks love collateral and for a very simple reason. If you have collateral, then the bank has something it can take if you fail to repay your loan. At its heart, collateral is a remarkably simple concept. However, unfortunately, many people who want to start a business lack it, and it can be difficult to finance a business without collateral. All of this leads us to the simple question, “Can I start a business without collateral?” 1. Try the SBA There are ways that you can start a business with …
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 …
Since one often hears the term “fair value” or “fair market value,” it would be easy to assume that “fairness opinion” means the same thing. A fairness opinion may be based to some degree on fair market value, but there the similarities end. Here’s what a fairness opinion is and how it could affect the sale of a business. Assume that you are president of a family business and the other members are not active in the business, but are stockholders. Or you are president of a 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 …
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 …
Many experts say the best time to prepare to sell your business is when you start your business. Few business owners reach that level of preparedness. Most business sales are event-driven. Factors such as problems with a partnership, health issues, burnout or even divorce can drive a business owner to sell. Once you’ve made the decision to sell your business, know this: Unexpected events and factors will always rise to the surface. In this article, experienced business brokers offer advice on fo …
Owners often don’t understand their leases, and this can be an expensive oversight. If your business is location-sensitive, then the status of your lease is likely a major factor in the value of your business. The location of restaurants and retail businesses is usually critical to the operational success of the business. But every business should understand in detail the terms of its leases. Key factors involving leases should not be ignored or overlooked. If you adhere to these guidelines, you …
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 …
Not everyone wants to sell when they feel as though they have to sell. Life changes, such as divorce or illness, can trigger the sale of a business. Owners may want to sell because of declining business revenue to partnership problems and more. But owners may find that selling isn’t always an option, especially for small businesses. In this article, we will take a closer look at just such a situation. The business we’re discussing is a successful distribution business, which is also a classic ex …
If you own a business, then ownership transition should definitely be a central topic in your planning. A few years ago, MassMutual Life Insurance Company conducted a very interesting and thought-provoking survey of family-owned businesses. Obviously, family-owned businesses have their own unique needs and challenges. The MassMutual Life Insurance Company survey certainly underscored this fact. While the survey was conducted a few years ago, the information it contained is more relevant and acti …
By Loren Schmerler, CPC, APC, President, Bottom Line Management, Inc. Longtime GABB member Loren Schmerler answers seven questions business owners often ask him. How much is my business worth? The correct answer is the price a Buyer offers you that you are willing to accept. It makes no difference whether you are making money or losing money. It makes no difference whether sales are increasing, declining or flat. It makes no difference how much blood, sweat and tears you have put into your busin …
By Loren Schmerler of Bottom Line Management, Inc. Are you ready to sell your business? Thinking about starting new adventures? Certain changes you may make now can help you increase your business value. Below are top 10 tips on how to prepare your business for sale from expert, Bottom Line Management, Inc. founder, Loren Marc Schmerler, a Certified Professional Consultant and Accredited Professional Consultant. Top Ten Must-dos When Selling a Business Know why you want to sell your business. Ma …
The time you invest getting to know and understand your customers is time very well spent. The feedback you get is gold, pure gold. Yet, there are other reasons why this is a prudent move. Let’s take a look at some of the key reasons you should learn more about your customers and their specific needs. Today’s world has become increasingly impersonal. Most of us spend a shocking amount of time looking at one type of digital screen or another. Personal interaction isn’t what it once was, and you c …
Susan Kite, Vice President of Government Guaranteed Lending for the Brand Bank You’ve either got a business to sell, or want to buy a business. So getting an SBA loan may be the key to closing the deal. How do you make sure that the loan is approved, whether you’re the buyer or the seller? On April 25, a panel of SBA lenders convened at the Georgia Association of Business Brokers meeting. Susan Kite, Vice President of Government Guaranteed Lending for the Brand Bank moderated the panel. Panelist …
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 …
Christopher Lemley, the director of the Georgia State University Professional Selling and Sales Leadership Program For business brokers or other solo professionals, the most valuable resource is your time. Outsource, outsource, outsource, was the recommendation of Christopher Lemley, the director of the Georgia State University Professional Selling and Sales Leadership Program, who spoke on Tuesday, Jan. 26, to the Georgia Association of Business Brokers. Gaining and keeping customers was the to …
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 Kim Eells, Vice President, The Brand Bank & Susan Kite, Vice President, Signature Bank of Georgia Kim Eells, V.P. of the Brand Bank and Susan Kite, V.P. of Signature Bank of Georgia 1. When is a Business Valuation Required? If the purchase price of the business less the appraised value of real estate/equipment is over $250,000 or your deal is not an arms-length transaction or if the bank requires for comfort; cost is generally $2,500 – $3,000 and takes about 2 weeks. 2. What happens when …
Questions Business Owners Ask & Answers I Give Them Veteran business broker Loren Marc Schmerler, a member of the board of the Georgia Association of Business Brokers and president of Bottom Line Management, Inc., offers his advice for answering common questions asked by business owners. How much is my business worth? The correct answer is the price a Buyer offers you that you are willing to accept. It makes no difference whether you are making money or losing money. It makes no difference w …
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, …
One obstacle to selling a business is an unrealistic asking price. GABB members can obtain access to Pratt’s Stats which can help sell more businesses by helping to price a business accurately. While Pratt’s no longer offers GABB members complimentary access, if a broker submits the details of a sale, they can obtain access to the database for a period of time at no cost. The following is from GABB President Matt Slappey’s presentation at the July 2013 GABB meeting. Pratt’s Stats can help you: S …
Corporate attorney Germaine Curtin By Germaine Curtin What exactly is a power of attorney? Does it give me the same power as if I were a lawyer? Do I become an attorney? What exactly does it allow me to do? Most people believe they understand powers of attorney, but many people are wrong. A power of attorney is simply a signed document that gives another person (the “agent” or “attorney in fact”) the power to act for the person giving the power (“principal”). The agent’s power is limited to th …
Surveys have shown that a seller who asks for all cash, receives on average only 70 percent of his or her asking price, while sellers who accept terms receive on average 86 percent of their asking price. That’s a difference of 16 percent! In many cases, businesses that are listed for all cash just don’t sell. With reasonable terms, however, the chances of selling increase dramatically and the time period from listing to sale greatly decreases. Most sellers are unaware of how much interest they c …
When a buyer is sufficiently interested in your business, he or she will, or should, submit an offer in writing. This offer or proposal may have one or more contingencies. Usually, the contingencies concern a detailed review of your financial records and may also include a review of your lease arrangements, franchise agreement (if there is one), or other pertinent details of the business. You may accept the terms of the offer or you may make a counter-proposal. You should understand, however, th …
A buyer will want up-to-date financial information. If you use accountants, you can work with them on making current information available. If you are using an attorney, make sure they are familiar with the business closing process and the laws of your particular state. You might also ask if their schedule will allow them to participate in the closing on very short notice. If you and the buyer want to close the sale quickly, usually within a few weeks, unless there is an alcohol or other license …
Business brokers are the professionals who will facilitate the successful sale of your business. It is important that you understand just what a professional business broker can do — as well as what they can’t. They can help you decide how to price your business and how to structure the sale so it makes sense for everyone — you and the buyer. They can find the right buyer for your business, work with you and the buyer in negotiating and along every other step of the way until the transaction i …
It generally takes, on average, between five to eight months to sell most businesses. Keep in mind that an average is just that. Some businesses will take longer to sell, while others will sell in a shorter period of time. The sooner you have all the information needed to begin the marketing process, the shorter the time period should be. It is also important that the business be priced properly right from the start. Some sellers, operating under the premise that they can always come down in pri …