TD Bank donates $150,000 to SBDC at FGCU after Hurricane Ian

TD Bank has generously donated $150,000 to the Small Business Development Center at Florida Gulf Coast University to provide technical assistance to area small businesses to help them recover from Hurricane Ian. The contribution will greatly assist the SBDC at FGCU in its mission to help local small businesses grow and succeed.

“We are incredibly grateful for the support of the TD Bank,” said Dorian Zwierewicz, regional director of the SBDC at FGCU. “This donation will make a significant impact in our community, helping us to support small businesses affected by

Awards Page 1

Nominees include: Malike Adigun, Curate Entertainment; Jennifer Alvarez Linguidi, Purely You By Jenn (DBA: Purely You Spa); Craig Bamberg, Platinum Dry Cleaners (Imperium Fabricare); Jeffrey Bonk, Architectural Metal Flashings; Kyle Cebull, Millennial Brewing Company; Jocelyne Clarke, K & E Medical Training Center; Sharetha Davis, Roses From Concrete Public Relations; Zachary England, ARK Eco Construction & Roofing; Susan Frantz, Frantz Marketing Solutions; RaSheka Fuller, Career Clinic; Jaron Henkel, Southwest Florida Electric; Glynis Jackson, Glynis Jackson Large Family Childcare Home; Jennifer Johnson, True Fashionistas; Harrison Kendall, SDVOS Laboratory | LabTECH Environment; Nazhae Lockwood, N.Y.A.Beauty; Suzanne Noriega, Inceptus; P. Blake Renda, Veedor Holdings/SrL; Louis Rosmy, Peyko LLC DBA Peyko Venue; Jaren Skinner, KayFi Holdings, DBA

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Hurricane Ian and provide essential technical assistance and training opportunities to help them recover and thrive. We are honored to partner with TD in this effort.”

The SBDC at FGCU is a member of the Florida SBDC Network, a statewide partnership between higher education and economic development organizations dedicated to providing emerging and established businesses with confidential, no-cost consulting and resources to help them grow and succeed. The SBDC at FGCU has served Southwest Florida businesses in Charlotte, Lee, Collier, Hendry and Glades counties since its inception in 1997.

Island Rides; Farrah Sturgis, KNK Exclusive Hair & Styles; Gary Tasman, Cushman & Wakefield Commercial Property Southwest Florida (CPSWFL); Charlene Towe, Studio 4:13; Shalonda Washington, Reliable Permitting BSS; Rob Whyte, Fort Myers Brewing Company; and Jaime Zabala, Advanced Hurricane Technology.

This year’s judges are: Timothy J. Cartwright, of Compass Advisory Group and Fifth Avenue Advisors; Donna Flammang, of Brennan, Manna & Diamond; Bill Daubmann, of My Shower Door/D3 Glass; and Michael Peterman, of Veradata.

Previous winners of the three awards include Norman Love of Norman Love Confections, Pam Oakes of Pam’s Motor City, Felix Lluberes of Position Logic, Gary K. Mart of Global Tech LED, Chris Spiro of Spiro and Associates, Dr. Aurora Badia of Florida Skin Center, Scott Fischer of Scott Fischer Enterprises, Ryan Carter of Scotlynn Transport, Daubmann, and Peterman.

TD Bank is proud to stand with SBDC at FGCU as they work to assist small businesses in the recovery effort following Hurricane Ian,” said Nick Miceli, Metro Florida, TD Bank regional president. “We know that small businesses are the backbone of our communities and we are committed to helping them achieve economic success.”

Due diligence when buying a business

QUESTION: I am considering the purchase of a local insurance agency. In addition to financial records, what else should I request from the owners?

ANSWER: The purchase of any business requires you thoroughly investigate all aspects of the entity in question.

This is particularly important when buying a service business like an insurance agency.

Outside of the physical assets, the primary value of the agency is an intangible known as goodwill. The goodwill I am referring to is its customer base.

To begin you should develop a due diligence checklist as follows:

• Request and verify financial data: This includes tax returns for three years, cash flow, balance sheets, profit and loss statements, accounts payable and aged accounts receivables. Also, any outstanding loans or debts that creditors may have a lien against.

• Inspect the physical assets: These may include the building, furniture, fixtures, equipment, computer hardware and software systems.

• Review contracts with insurance carriers: Is the agency in good standing with the companies it represents and will those companies continue the relationship under new ownership?

• Review employee contracts and independent contractor agreements: Do these include vested profit sharing, 401(k) plans and life and health insurance?

• Review and verify key employee information: Determine who they are and the duties they are responsible for. Is there a lot of attrition, or have they been with the company for five or more years? Will they remain under new ownership?

• Review and verify all customer information: Of particular importance, who are the key customers and what percentage of total premium volume do they constitute? Be wary if a large

BY GRAY POEHLER Guest Clumnist

percentage is attributed to a few customers. Also, what is the attrition or retention rate of customers over the latest three-year period.

• Check for legal issues: Is there any ongoing or pending litigation, and does the company have proper insurance in place?

• Verify the entity status: Is the business an individual, partnership, corporation or limited liability company? If a corporation or LLC, it’s better to buy just the assets. If you buy the entity, you are also assuming its liabilities and obligations.

• Be prepared to sign a confidentiality agreement where you agree to use the information requested only to assess the strength of the business. Make sure the agreement lets you share the information with your lawyer and accountant.

• If, in the final analysis, you decide to buy the business, try to pay for it on an earn-out basis. Offer a down payment of 20% with the balance to be paid monthly or quarterly over a period of three to five years, as a percentage of earned commissions.

While this article refers to an insurance agency acquisition, the checklist is applicable to any business. Your attorney and accountant may have additional suggestions you should consider before making a final decision.

Gray Poehler is a volunteer with SCORE Naples. Business counseling on this and other business matters is available, without charge, from the Naples Chapter of SCORE. Call (239) 430-0081 or visit https://naples.score. org/mentors.