http://www.ericperkinslaw.com/index.php en eric@ericperkinslaw.com Copyright 2010 2010-02-26T14:40:43+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/my_henrico_education_foundation_mock_interview_experience/ http://www.ericperkinslaw.com/index.php/whats-new/post/my_henrico_education_foundation_mock_interview_experience/ I was pleased to spend Wednesday afternoon interviewing J.R. Tucker High School students as part of the Henrico Business Council and Henrico Education Foundation's Mock Interview Program.  This was a fun opportunity to interview a number of ambitious teenagers and offer my insights on the job interview process and how to best position yourself for a successful interview.  The same attributes that make for a great interview apply equally to other business negotiations, namely:  (i) Preparation--the importance of knowing as much as you can ahead of time about who you dealing with, what your objectives are, as well as the other person's objectives; (ii) Professionalism--people want to associate themselves and their businesses with people who inspire confidence and present themselves in a business-like manner; and (iii) Personality--people are unique in many ways and diversity is critical to success in the business world, while at the same time many of us share common interests, philosophies, etc., and when people can identify such common ground, then working together often becomes more productive and mutually beneficial. In other words, be yourself. For more information about the mock interview program, please visit http://www.grcc.com/View/Page/programs_bc_henrico_issues  2010-02-26T14:40:43+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/perkins_to_discuss_business_start-up_issues_at_usta_virginia_tennis_worksho/ http://www.ericperkinslaw.com/index.php/whats-new/post/perkins_to_discuss_business_start-up_issues_at_usta_virginia_tennis_worksho/ Richmond business and nonprofit attorney Eric Perkins will speak at the USTA/Virginia Tennis workshop for USTA League Coordinators at Keswick Hall on Saturday, February 13, 2010.  Perkins, active in the tennis community for many years as a volunteer at the local and national levels, will lead a discussion on the nuts and bolts of forming both for-profit and nonprofit entities in the world of recreational tennis, touching upon business formation, corporate governance, and tax compliance issues.  Visit www.virginiatennis.com for details about the event. Closely Held Businesses and Business Start-Ups 2010-02-08T02:53:48+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/tips_for_enhancing_the_earning_potential_of_atp_and_wta_tennis_professional/ http://www.ericperkinslaw.com/index.php/whats-new/post/tips_for_enhancing_the_earning_potential_of_atp_and_wta_tennis_professional/ Professional tennis players could meaningfully enhance their public image, thereby increasing their perceived value to tournament promoters and corporate sponsors, by adding just a little flavor to their post-match speeches and interviews.  So, for all the ATP and WTA professionals battling it out in the summer heat of Melbourne at the 2010 Australian Open right now, here are a few concepts to incorporate into your next interview or courtside speech: 1.  Self-deprecating humor (not to be confused with self-defecating humor).  The ability to playfully poke fun at oneself is a universally crowd-pleasing tactic.  2.  Light-hearted trash talking or challenge to the competition.  Creating and promoting rivalries generates human interest not only in your own career, but the pro tour and the sport in general.  Don't rely on the mainstream media to manufacture rivalries for your sport.  Take charge of your own career. 3.  Product Placements.  What are your favorite brand name goods?  Creatively incorporate references to them in interviews and public appearances.  Not only will you spice up your interviews, but you might just open the door to new sponsorship opportunities for yourself. In short, by incorporating some basic concepts of character development and human interest (similar to the way that WWE develops characters and storylines for its talent), a professional tennis player can go a long way toward enhancing his or her own earning potential off the court, and what's more, the confidence gained through such off-court activities could very well translate to greater confidence on the tennis court. 2010-01-23T02:52:22+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/mixed_reviews_for_sba_arc_loan_program/ http://www.ericperkinslaw.com/index.php/whats-new/post/mixed_reviews_for_sba_arc_loan_program/      A little over six months after its June 2009 debut, the SBA America’s Recovery Capital (“ARC”) Loan program continues to get mixed reviews. On a positive note, over 45% ($142 million) of available funds have been distributed by over 1,000 lenders to nearly 4,400 borrowers.  On the downside, many other borrowers have found it difficult to qualify for these loans and to find participating lenders.  Further, the future of the program has been cast in doubt after Senator Olympia Snowe, an original architect of the ARC Loan program, introduced a bill late in 2009 that would repeal the program.      Regardless, the program remains open until either the remaining funds are exhausted (over $100 million remains available under the program) or September 30, 2010, whichever comes first. Closely Held Businesses and Business Start-Ups 2010-01-15T03:26:38+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/kudos_to_the_state_of_wisconsin--electronic_franchise_registration_filing_s/ http://www.ericperkinslaw.com/index.php/whats-new/post/kudos_to_the_state_of_wisconsin--electronic_franchise_registration_filing_s/   The Wisconsin Department of Financial Institutions recently became the first state in the nation to announce the debut of an electronic filing system allowing franchisors to submit registration applications online. The new filing system is scheduled to go online this month. Online filings should improve efficiency, thereby saving franchisors time and money as they navigate the registration process in order to sell franchises in the state of Wisconsin.  Hopefully, the other dozen or so "registration" states will follow suit. For additional information, please see the Wisconsin Department of Financial Institution’s website at: www.wdfi.org/fi/securities/franchise/. Franchising 2010-01-03T18:50:25+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/see_eric_perkins_quoted_in_richmond_times_dispatch_franchising_article/ http://www.ericperkinslaw.com/index.php/whats-new/post/see_eric_perkins_quoted_in_richmond_times_dispatch_franchising_article/ The cover story in Section D (Moneywise) of today's Richmond Times Dispatch is an article by Iris Taylor discussing the franchise industry's performance in 2009 and its outlook for 2010.  Richmond franchise attorney Eric Perkins is quoted in the article and offers several tips for those considering buying or starting a franchised business.  Read the story online at  http://www2.timesdispatch.com/rtd/business/local/article/FRAN03G2_20100102-182405/314980/. Franchising 2010-01-03T18:36:48+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/perkins_slated_to_speak_at_regional_workshop/ http://www.ericperkinslaw.com/index.php/whats-new/post/perkins_slated_to_speak_at_regional_workshop/ Richmond business attorney Eric Perkins is scheduled to be a speaker at the 2010 USTA/Mid-Atlantic Section Community Tennis Development Workshop on January 30, 2010 in McLean, Virginia.  Perkins will discuss the basics of organizing and operating a nonprofit sports organization, including corporate formation and governance issues, applying for tax-exempt status, annual filing requirements, and other compliance issues and emerging trends in the nonprofit community.  For additional details or to register for the event, please click on the following link: http://www.active.com/event_detail.cfm?event_id=1814948. Tax-Exempt Organizations 2009-12-02T04:12:15+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/highlights/ http://www.ericperkinslaw.com/index.php/whats-new/post/highlights/            Conflicting currents of cautious optimism and imminent doom were on display during the Real Estate Investment Securities Association’s (REISA) annual conference, which took place October 18-20, 2009 at the Bellagio Hotel in Las Vegas, Nevada.  Approximately 700 attendees—about half of which were registered representatives—enjoyed a record-breaking 45 educational sessions and engaging keynote addresses by Alison Levine, team captain of the first American women’s Mount Everest expedition, and Dr. Mark Dotzour, chief economist and director of research for the Real Estate Center at Texas A&M University.  As evidence of the new energy and interest in the organization emanating from its recent rebranding from TICA to REISA, conference organizers estimated that nearly fifty percent of conference attendees were either not members of the organization or were new members attending their first annual conference.             While I was not able to attend every breakout session, I managed to attend quite a few, and set forth below are my top five highlights from the conference.             1.         The Commercial Real Estate Market—More Bad News.  The general consensus among industry experts who spoke at the conference is that the commercial real estate market will get worse before it gets better.  The lack of liquidity in the debt markets will continue to paralyze the commercial real estate market.  Job losses continue to hurt market fundamentals and few businesses are reporting plans to hire in the next six months.  Commercial real estate pricing is down 40-50% from its peak in 2006-2007 (dubbed a “fairyland” that we are unlikely to see return anytime soon) and may not show significant signs of turning the corner until 2012-2013.  Key economic indicators to follow are (i) the personal savings rate (this rate flattening out will mark the end of the recession) and (ii) corporate profits.               2.         The Capital Markets Remain Frozen.  Lenders remain reluctant to lend due to regulatory and risk management concerns.  The CMBS debt market has yet to resurface, but there have been some positive developments in recent months that offer some sense of optimism for the future.  In September the IRS issued guidance in Revenue Procedure 2009-45 that may facilitate the modification of CMBS loans by providing relief from tax regulations that would otherwise prohibit loan modifications.  CMBS loan servicers now possess some measure of added flexibility to work with borrowers before a loan goes into default.  With $150 billion of CMBS debt scheduled to mature between 2010-2012, this flexibility could have a meaningful impact, but loan servicers and borrowers will still face a variety of obstacles to reach mutual agreement on a loan modification.                         Multi-family properties are still being financed through Fannie Mae, Freddie Mac, and HUD financing, but the agencies, while remaining active in this down market, are not expressing much interest in either TIC or DST structures at this time.                          There is a premium in today’s market on so-called “relationship banking.”  Some sponsors are finding success developing relationships with regional and local lenders.             3.         New Products and Deal Structures Present Opportunities.  Conference presenters such as Keith Allaire predicted that syndicated debt programs will remain popular while a variety of sponsors are promoting:  (i) opportunity funds that will invest in distressed debt, discounted debt, or CMBS paper; (ii) preferred equity and mezzanine debt funds that will provide short-term gap financing; (iii) oil and gas programs; and (iv) equipment leasing programs, not to mention the growing amount of money being raised by registered, non-traded REITs.  A common theme of these programs is that sponsors are forgoing up-front fees and compensation so as to better align their interests with those of their investors.             4.         RIAs Present an Untapped Distribution Platform.  Sponsors are increasingly looking to distribute their programs through investment advisers as a complement, or in some cases an alternative, to the independent broker-dealer network.  The benefit to the sponsor community is that this network represents a relatively new and untapped distribution network for their programs, not to mention a more favorable compensation model that, at least at the front end of an offering, can save 6-8% on the up-front sales load.  For the investment adviser community, the challenge from a regulatory compliance perspective is structuring their compensation from these illiquid Regulation D securities.  The key issues relate to management, valuation, and liquidity.  Some investment adviser firms are comfortable with their policies and procedures in this regard.  Other firms less comfortable given the lack of definitive guidance on these issues have encouraged REISA to pursue a formal request for guidance from the SEC, and REISA has responded by forming a special task force to explore these issues to clarify how RIAs can be compensated in connection with Regulation D private placements.             5.         The Bar for Sponsors Has Been Raised.  The economic downturn has not surprisingly brought with it an increase in litigation, arbitrations, bankruptcies, loan defaults, breaches of contract, sponsor failures, and in the most egregious cases, criminal prosecutions.  Regulators and industry associations promise greater scrutiny on Regulation D private placements and the industry professionals involved with these transactions.  Industry surveys suggest that it will be difficult for new sponsors without a proven track record to successfully enter the private placement market, as prior performance and a niche investment or management strategy will be critical to a sponsor’s efforts to raise capital during these challenging times.              From a disclosure perspective, sponsors are leaning toward more disclosure and transparency, with greater attention being given to investor relations and reporting.  At the same time, however, sponsors are facing increasing pressure to control costs, particularly up-front offering expenses (sales commissions, legal expenses, etc.) and to develop structures that better align sponsor interests with those of their investors.             Favorite Quote:  Keynote speaker Dr. Mark Dotzour set the stage for a very informative—and often hilarious—presentation by starting off with the following zinger:             “I am not a motivational speaker…I don’t have any self-esteem so I don’t care if you do when you leave here.”   2009-11-13T02:02:39+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/five_reasons_to_read_donald_dells_new_book_never_make_the_first_offer/ http://www.ericperkinslaw.com/index.php/whats-new/post/five_reasons_to_read_donald_dells_new_book_never_make_the_first_offer/ Donald Dell, a pioneer in the world of professional sports representation, shares his four decades of deal-making experience, compelling war stories, and humbling lessons learned representing some of the most influential athletes of our generation—from Jimmy Connors to Michael Jordan.  This book is a great read for any business executive or owner interested in negotiating strategies and tactics, and a must read for anyone interested in the sports industry (particularly professional tennis).  In particular, you will learn: 1.         The immeasurable value of a sense of humor in negotiating business transactions (especially a self-deprecating sense of humor). 2.         The “dirty” little secret of Dell and his then-client Jimmy Connors that arguably impacted the outcome of the 1983 U.S. Open men’s final. 3.         The importance of trust and authenticity in being a successful business person. 4.         Why litigation and “scorched earth” tactics rarely make sense from a business perspective. 5.         How it came to pass that a young Donald Dell got reamed out by Donald Rumsfeld (and the lessons learned from it).   Closely Held Businesses and Business Start-Ups 2009-10-10T02:34:07+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/virginia_business_owners_beware_of_corporate_maintenance_scams/ http://www.ericperkinslaw.com/index.php/whats-new/post/virginia_business_owners_beware_of_corporate_maintenance_scams/ A wave of corporate compliance scams has struck unsuspecting business owners across the country in recent years.  The scam is pretty straightforward.  An official-looking letter is sent to a business owner calling for payment in exchange for preparing what are described in a misleading fashion as “legally required” corporate forms.  Ominous warnings of the dire consequences of noncompliance are vividly described.  The letters are strategically designed to resemble forms issued by state agencies, presumably in the hope that recipients will falsely assume the letters originate from state government agencies and, therefore, pay the bogus fee. State agencies across the country are clamping down on these corporate maintenance schemes: http://www.sos.ca.gov/business/be/alert-misleading-solicitations.htm http://myfloridalegal.com/newsrel.nsf/newsreleases/979FC7C7092E085C85257371005EFFCD http://www.bbbsoutheastflorida.org/GIReport.aspx?NewsID=80 If you receive suspicious solicitations in the mail regarding registered agent or other corporate compliance services, consider doing the following before submitting any personal information or paying any money: Read the fine print. Conduct some basic due diligence on the company sending you the solicitation (a Google search will often provide a wealth of insightful information about the company soliciting your money). Call the Virginia State Corporation Commission or a business attorney to confirm state filing requirements and other corporate compliance questions. Closely Held Businesses and Business Start-Ups 2009-10-10T02:02:56+00:00