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.
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