• Report: #331832

Complaint Review: Greg Kovsky - IBA - International Business Associates

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  • Submitted: Saturday, May 10, 2008
  • Last Posting: Monday, July 14, 2008
  • Reported By: — Seattle Washington
Greg Kovsky - IBA - International Business Associates
330 112th Avenue NE, #302 Bellevue Washington 98004 U.S.A.

Greg Kovsky - IBA - International Business Associates Wrongful Failure To Return Deposit Bellevue Washington


1Author 0Consumer 0Employee/Owner

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Greg Kovsky is a business broker in Bellevue, Washington. He does business under the name IBA. Mr. Kovsky represented a business for sale that I was interested in. I gave Mr. Kovsky a $25,000 deposit and signed a non-binding letter of intent which he had modifed. The only way provided for me to forfeit my deposit was if I failed to comply with a material term of a definitive asset purchase agreement. Closing of the transaction was conditioned on execution of a definitive asset purchase agreement.

I terminated the letter of intent because, among other things, the business owner would not stand behind the company's financial statements and the IRS could not verify its tax returns. No asset purchase agreement was ever executed. Mr. Kovsky then led me to believe that I would receive a return of my deposit if I signed his form. I signed his form, but, after four months, have still not received a return of my deposit, despite my best efforts. Mr. Kovsky maintains that I forfeited my deposit.

There are honest business brokers in the Seattle area. They represent good quality companies and won't try to keep your deposit if the transaction doesn't close. I recommend using them. Use extreme caution if you deal with Mr. Kovsky.

Tim
Seattle, Washington
U.S.A.

This report was posted on Ripoff Report on 5/10/2008 9:33:39 AM and is a permanent record located here: http://www.ripoffreport.com/business-consultants/greg-kovsky-iba-inte/greg-kovsky-iba-internatio-c6j8f.htm.

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Inaccurate Information

AUTHOR: Gregory Kovsky - Bellevue (U.S.A.)

SUBMITTED: Monday, July 14, 2008

The original report was submitted by Tim. As background, Tim is an attorney turned entrepreneur. No deposit was ever made to IBA or to me personally. The earnest money associated with the potential transaction was made to Howard Droker, a local escrow attorney. Tim drafted the letter of intent in its final form. No modifications appear on that signed document. Tim elected to exit from negotiations related to the acquisition of the business after reaching agreement on the terms of the purchase & sale agreement through negotiations conducted by his Washington State attorney and the seller's attorney. The court has confirmed that fact.

I & my firm had no administrative control of the earnest money deposit. Control of that deposit was held by the escrow attorney under direction from the parties involved in the potential transaction. Tim requested the return of his earnest money deposit when he exited from negotiations. I facilitated that request. The seller involved in the transaction, after consulting his attorney, did not agree to the request and requested that the earnest money deposit be released to him based on the terms of the letter of intent the parties had mutually executed in "good faith".

The issue of who the earnest money deposit will be released to is currently being settled in court. The earnest money deposit has been released by Mr. Droker to the court pending their decision.

Both the seller & buyer in this transaction were represented by attorneys. I facilitated negotiations between the parties in "good faith" and attempted to create an environment of full disclosure for due diligence. Tim by email communication indicated that he had satisfactorily completed his due diligence on the company. It is my understanding that Tim's SBA lender also had approved the transaction for funding.

I attempt to negotiate "win-win" transactions between buyers & sellers in business sales. I believe that was achieved in this case when agreement was reached between Tim's & the seller's attorney on the purchase & sale agreement.

Tim's decision to deviate from that agreement resulted in the earnest money deposit issue he currently faces. I am confident that the court system will award the earnest money deposit to the appropriate party, the seller or Tim, based on the facts of the case.

Gregory Kovsky
IBA
Bellevue, Washington
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