- July 01, 2015
The Fall Summit, held September 13-16, 2015 in Santa Ana, California is a great opportunity to earn 32 credit hours from courses that are required to attain your CBI designation. The Fall Summit pass, which includes all course materials, 4 days of top notch instruction, and lunch each day is just $1,500. Click here to get all the details and register.
This may be the last chance to take these courses before the next CBI exam, which will take place at the IBBA Fall Conference, November 9-14, 2015 in Albuquerque, New Mexico. The exam will be held in the morning on Saturday, November 14, 2015.
Cress V. Diglio, CBI, M&AMI 2015 Chair of the IBBA
Referrals are the lifeline of our industry. We all love receiving a phone call or email where the person makes the statement “_________ referred you to me….” Referrals and recommendations of our services are powerful when coming from a source that a person trusts. It is much easier to gain the trust and ultimately the business of people when we are referred rather than sending a blind letter or making a cold call. The million dollar question is, how do you build long lasting referral sources?
There isn’t one easy answer to the question. Building a strong referral source takes time, energy and effort. It doesn’t happen overnight and far too often people quit when they don’t see immediate results. There is an old adage, “people do business with people they like and people they trust.” Let’s break this down into two parts.
Part 1: People Do Business with People They Like
Many have said that you can’t teach a person to be likable. People either have a likable personality orthey don’t. I have never subscribed to that philosophy. I do agree that there are some people that can enter a room and immediately become the center of attention utilizing their charm and wit. I also agree that the majority of individuals aren’t blessed with those characteristics. If you aren’t blessed with the innate ability to immediately win over a crowd and have everyone in the room desirous of your attention, then try these 8 simple things:
These might sound simple, but it’s sad to note that in today’s society, many of these things have been forgotten. I guarantee that if you apply these 8 things into your everyday life you will be a more likable person. Remember, people do business with people they like!
At A Glance
are KIND AND COURTEOUS.
LAUGH AND SMILE.
follow the GOLDEN RULE.
Building a strong referral source takes time, energy and effort. It doesn’t happen overnight and far too often people quit when they don’t see immediate results.
Fall Summit Sept. 13-16
Santa Ana, California
Part 2: People Do Business with People They Trust
You conquered the first obstacle by becoming likeable. However, someone can like you instantly, but trust is built over time. Here are some practical steps to becoming trustworthy:
At A Glance
Remember, people can like you instantly but it can take years for them to trust you. You can take a lifetime to gain trust and lose it in a minute. If you are human you will make mistakes. Own up to those mistakes and don’t make excuses. The road to rebuilding trust begins with your reaction to adversity.
If you desire to build a pipeline of long lasting referral sources, you must learn to be more likable and trustworthy. If you are able to do all of the things listed in this article you will build a referral pipeline second to none. It won’t happen overnight and requires a commitment of your time, energy and resources. It will require a conscious effort to be more detail oriented, and possibly involve improving your personal characteristics and philosophies.
Remember, people can like you instantly but it can take years for them to trust you. You can take a lifetime to gain trust and lose it in a minute. If you are human you will make mistakes. Own up to those mistakes and don’t make excuses. The road to rebuilding trust begins with your reaction to adversity. I have been a business broker for 17 years and I can honestly say that over 75% of my deals are from a strong referral source that took a career to build. Every year that percentage rises – as does my deal flow. When I began in business brokerage I hated networking and had a difficult time making new acquaintances. I learned a few tricks on how to be likable and build trust. I hope these help you as much
as they have helped me.
Don Emmett, CBI Olga Kennedy Entrust Associates
Business sellers often wonder the value of retaining a business broker to help sell their businesses and frequently ask, “Why should I hire a business broker?” There are many reasons we can think of but our simple response to the question is, because helping people sell their businesses is what we do.
We recognize that you are the expert in your industry, whether you own a machine shop, e-commerce business, or a distribution/warehouse company. You know the ins and outs of your business and its industry because this is what you do, every day. Likewise, selling businesses is what business brokers do every day.
Business brokers know the steps needed to prepare and market a business carrying it through to closing. Brokers have strategic alliances with other professionals necessary in the transaction, such as attorneys and accountants, to whom they can refer sellers to utilize their services. Most business brokers have spent years working with hundreds or thousands of buyers developing a keen knowledge of the buyers’ perspective. Understanding the buyer’s perspective helps brokers effectively market their client’s business ultimately increasing the seller’s chances at closing the deal.
Again, helping business owners sell their businesses is what business brokers are here to do. When selling a business, owners have certain responsibilities and time constraints. Retaining a business broker takes the pressure off a seller to manage all the steps of the selling process. Determining a fair market asking price, gathering the necessary information and documents needed, marketing, finding and screening qualified buyers, answering buyers’ questions, collecting and dispersing appropriate information to the right people at the right time, managing negotiations…the list goes on. It’s important as a business broker to have a complete understanding of our role and the selling process so in turn, the seller will have the confidence to hire a broker and trust you with their business.
Kent Hoover Washington Bureau Chief
The Small Business Administration can resume lending to small businesses through its flagship 7(a) loan program now that Congress has raised the program’s authorization level.
The SBA was forced to suspend 7(a) lending on Thursday after the program hit its $18.75 billion annual loan ceiling with more than two months left in the government’s fiscal year. The Senate passed legislation Friday raising that limit to $23.5 billion, and the House followed suit Monday afternoon.
Vasilis Georgiou, M&AMI, CBI, MBA, CRIM
Like any business, there comes a time when franchise Owners decide to sell their franchise. The reasons for selling it are no different than any other owner: It could be because of a new venture or change in direction, health, divorce, retirement, or simply wanting to capitalize on the many years of hard work spent building an asset with exit value.
In my many years as a Business Broker and Franchise Consultant, having worked with many hundreds of potential Sellers and Buyers of franchises and businesses, I have often found that selling a franchise has its own complexities, as well as its own inherent advantages for the Intermediary. Intermediaries should bear in mind that when Buyer Prospects are considering an investment in a franchise resale, they are typically not only evaluating the demand for its products or services, industry trends, complexity of the model, and people requirements, but they also evaluating the reputation and staying power of the Franchisor. In other words, Intermediaries need to be prepared to position and leverage any positives the Franchisor can add to the selling proposition. At the same time, the Franchisor can be very useful in providing valuable insights into the industry, but more importantly, would often have a pretty good idea of what the Seller’s Discretionary Earnings (SDE) multiples look like, based on previous re-sales in the system.
Owners of franchises often have a bit of an advantage when it is time to sell, a fact that is helpful to Intermediaries. The advantage stems from the fact that a franchise, by nature, is monitored and audited by the Franchisor. That fact results in less uncertainty when it comes to revenues and expenses. The overall financial model can also be validated by reviewing Item 19 of the Franchise Disclosure Document, which outlines financial data for the whole system.
There are also more opportunities for Buyer Prospects to validate the financial model directly by working through a parallel investigation with the Franchisor, and also reaching out to other franchisees in the system.
Another inherent advantage for the Intermediary is that the franchise is part of a network of franchisees who often act as a de-facto marketplace for re-sales when they want to expand and add on to their own operations. World class Franchisors understand the importance of helping their franchisees exit gracefully and with the highest valuations the market will bear. They understand that the exit event is part of their value proposition, a way to ensure that top quality candidates will continue to be attracted to their model.
Overall, when Owners of franchises are preparing and planning for an exit event, they need to consider some of the following questions, very similar to any other Owner:
A typical task sequence for a franchise transaction after a Buyer has been located, looks as follows:
About the Author:
Mr. Georgiou is currently the President of CrossRoads Business Brokers, Inc. & www.TheFranchiseCrossRoads.com, and has been involved in a great number of business transactions over the last 12 years. He is also a national Franchise Consultant with FranChoice advising hundreds of franchise Candidates in their search for a franchise. Since 2008, he has been a successful multi-unit owner/operator of a Home Care Franchise in California. Previously, Mr. Georgiou was a former Senior Manager with KPMG Consulting (BearingPoint) where headvised and assisted various mid-market companies with operations, strategy, and systems.
Jeff Snell, M&AMI, CBI, ABI ENLIGN Business Brokers
While CBI certification and networking opportunities at conferences are appreciated by all, one of the other benefits that shouldn’t be overlooked is the Market Pulse Report. You may have received emails recently asking you to participate in the survey – and I hope you did because this easily overlooked benefit provides market data that is actionable in your practice that can help you make better decisions about how you operate your business.
The Market Pulse Survey and subsequent report provide quality information on a quarterly basis in order to become the go-to source for Main Street and Lower Middle Market transactions. Created by the IBBA and M&A Source, along with Pepperdine Private Capital Markets Project, the Market Pulse Report gives timely and accurate information to help you build a successful and sustainable business.
For more information on the Market Pulse Report and to access previous reports, click here.
Date: Wednesday, August 12 12:00 p.m. EDT
Register: Click Here
A loan decline does not mean the end of your deal and YOU can be the difference. On this webinar we’ll talk about addressing a loan request right after a lender decline and things you can do to have the application be reconsidered. Making some small changes could make big differences in a lender’s approval process….and your ability to close the deal!
About the Presenter:
Steve Mariani is the President & Founder of Diamond Financial Services and has personally been involved in small business since 1978. His IBBA Conference Workshops on SBA financing are always packed, as his practical insights are geared specifically to helping business intermediaries get more deals done. Steve can be reached at email@example.com.
You already know the value earning your CBI brings – you are a proven, experienced, and educated broker. But your clients don’t always understand why they should choose a broker with a CBI. The IBBA is here to help! The Marketing Committee has been hard at work updating IBBA’s former CBI brochure to include more up-to-date information and compelling quotes. Updates will be made each year as needed and redistributed to CBIs.
Additionally, the brochure is in a convenient, low-maintenance format so all CBIs can print on-demand as. If you are current CBI, email firstname.lastname@example.org to request a copy of the brochure be sent to you.
Hal Blackwell, Jr.
Richard Della Penna
James D. Linfield
Ronald J. Welebny