In many cases, the sale of a small company is “event” driven. That is, the reason for sale is often an event such as a health decline or illness, divorce, partnership issues, or even a decline in business. A much more difficult reason for selling is one in which the owners simply want to retire and live happily ever after. Here is the problem: Suppose the owners have a very prosperous distribution business. They each draw about $200,000 annually from the business plus cars and other … [Read more...]
Ron Chernak Presented With IBBA’s Tom West Award
December 3, 2013 by
November 19, 2013. The Tom West Award was presented to Ronald V. Chernak, CBI, M&AMI, Fellow of the IBBA, at the IBBA and M&A Source Fall Conference in Savanna, GA. Ron is the President of The FBB Group, Ltd., (formerly First Business Brokers, Ltd.), located in Colorado Springs, CO. He is also a principal in Corporate Finance Associates (CFA) Colorado, LLC. He has served as the Chairman and/or Director of the Board for numerous business brokerage committees and organizations, … [Read more...]
Surprises CEOs Face When Selling Their Companies
November 1, 2013 by
Surprise #1: Substantial Time Commitment In the real estate business, once the owner engages the broker there is very little for the owner to do until the broker presents the various offers from the potential buyers. In the M&A business, there is a substantial time commitment required of the CEO/Owner in order to complete the sale properly, professionally and thoroughly. The following examples are worth noting: Offering Memorandum: This 30 + page document is the cornerstone of the … [Read more...]
Support HR 2274 Broker-Dealer Law
September 26, 2013 by
Colorado Association of Business Intermediaries Broker-Dealer Alert! (HR 2274) Message From The President Of CABI CABI Members, We discussed the importance of HR 2274 at our conference last week. I wanted to follow up to make sure you knew how you could support the effort. This bill would allow us to act as M&A brokers in effecting the sale of businesses. It would NOT allow us to raise capital or conduct an IPO … [Read more...]
Company Weaknesses
September 18, 2013 by
Take two seemingly identical companies with very similar financials, but one of the companies was worth substantially more than the other company. One company will sell for $10 million “as is” or some changes can be made and the same company can be sold for $15 million. Following is a partial list of potential company weaknesses to consider in order to assess a company’s vulnerability. Customer Concentration: First, one has to analyze the situation. The U.S. Government might be considered … [Read more...]
CABI 2013 Fall Conference Vendor Tables
September 11, 2013 by
Promote your product or service to the CABI membership at the 2013 Fall Conference on Wednesday, September 18, 2013. The conference will be held at the Red Lion Hotel Denver Southeast, 3200 South Parker Road, Aurora, CO 80014. Map & Directions. Vendors are encouraged to have their tables ready by the Morning Break at 10:00 a.m. See the conference schedule here. You may contact Conference Chair Sonja Wood at 303-667-8030 or NextageRealtyColorado@gmail.com for further details. Powered … [Read more...]
Colorado Approves an Exemption from the Broker-Dealer Registration Requirements
August 29, 2013 by
EXEMPT:"A person who acts as a business broker with respect to a transaction involving the offer or sale of all of the stock or other equity interests in any closely held corporation provided that such stock or other equity interest is sold to no more than one person, as that term is defined in the Act."- As quoted from 3 CCR 704-1:51-2.1.1 Paragraph B. Effective date of October 15, 2013. From an email written by Mike ErtelCo-Chair, AM&AA Licensure Task Force:TO: ALL SPONSORS OF AM&AA’s … [Read more...]
Colorado Proposes an Exemption from the Broker-Dealer Registration Requirements for Business Brokers – August 26, 2013
August 22, 2013 by
By: Trevor Crow, Dufford & Brown, P.C. The Colorado Division of Securities recently issued a notice of a public hearing, which is being held to amend Rule 51-2.1.1 to exclude business brokers from the definition of “Broker-Dealer” as that term is defined under the Colorado Securities Act (C.R.S. § 11-51-201(2)). The proposed amendment to Rule 51-2.1.1 adds a new Section B to the current rule. The new Section B is provided below. A full copy of the current Rule 51-2.1.1 is here. Rule … [Read more...]
Preparing A Company To Sell
August 22, 2013 by
By: Trevor Crow, Dufford & Brown, P.C. Time is the biggest deal killer, so being prepared is the best way to put your business in a position to sell when the opportunity comes knocking. Selling a business is a time sensitive process. When a potential buyer is ready to pull the trigger, the business owner must be prepared to close the deal quickly or the buyer may lose interest or find another potential target. I believe it’s one of Newton’s laws of motion that says things in motion tend to … [Read more...]
