Business Brokerage - The Basics and Beyond

New business brokers spend 90% of their time prospecting. So, it's only natural that we spend a LOT of time going over all the methods in your toolbox.

Love it or hate it, networking is a big part of a new broker's cadence. The key is to identify which ones are worth your time and where your people are (remember your avatar?). Nail this, and you've got networking gold!

Cue the eye roll. Yes, business brokers love snail mail. Learn what works and what doesn't and start licking those stamps! 

Tune in for some practical know-how on the most efficient way to make a prospecting list. Good news - it doesn't involve flipping through the yellow pages like my dad and uncle did back in the day!

Whether you're an avid social media user, or highly allergic to the thought, we'll review some successful approaches to what can be a daunting task.

Gather around as we review some of my own social media posts and discuss what works and what doesn't.

Some of you may excel at cold calls and others may avoid it at all costs. Whichever camp you fall into, it's important to know the basics so make calls effectively and efficiently if you choose to do so.

There is nothing more powerful than meeting a prospect face to face. Learn how to make these visits efficiently and build them into your daily routine.

Learn what works and what doesn't when it comes to email marketing. The key to standing out from the crowd of hundreds of other sales emails is delivering a snappy message and a lot of value.

Prospecting can take an emotional toll and rejection can feel very personal. This short pep talk helps you keep your head in the game and provide some cheering for your journey.

It's human nature to think we're unique beings, but really we all just want the same things. That rings especially true when it comes to the common questions sellers ask. If you know the answers to these questions, your listing appointments will be smooth sailing! 

You'd be surprised what a new agent forgets when sitting down with a seller for the first time. Things as simple as asking for the seller's name can be forgotten. This lesson provides you with a sellers' cheat sheet so you'll never forget to ask those important questions as you get to know your new client.

The most common question you'll be asked is, "What's my business worth?". To answer that question (ethically and accurately) you'll need to ask for a few basic items. After this lesson, you'll have those items committed to memory.

 

If you're working with brick-and-mortar businesses, chances are you're going to bump in to real estate. Whether your client leases the property or owns will change how you'll proceed. This crash course in real estate for business brokerage will guide you down the right path and avoid getting into legal trouble.

The best way to get comfortable with leases is to read them. I've included a lease for you to review with an accompanying lease summary form to guide you through the key terms.

Working with franchises requires an additional layer of know-how. This crash course in franchises will help you ask the right questions and insure you get the right documents for your listing.

Before we dive into the process of valuating businesses, let's take time to discuss some common issues brokers have when they face a valuation.

Owner, Broker, Buyer and Lender. If you ask those four people the value of the same business, you'll likely get four different answers. Learn why this is and what you can do as a broker to bring these values closer together.

Let's dig in! This section goes over in detail how to review P&L's and what kinds of questions to ask. After this step, you'll be ready to recast the financials - one step closer to finishing your first valuation! Reference this P&L in lecture 26 - Valuation Case Study.

Once you've gone over the P&L's you're ready to recast! This section goes over how to do this and what it all means. Don't worry - you'll get a chance to practice in lecture 26! 

There are many resources for finding industry multiples, but the business reference guide is one of the most trusted in the business brokerage world. Follow along as I show you how to use it.

Now it's your turn to put what you've learned into practice. Review the Cold Zone Context PDF that contains insights into the business that you wouldn't otherwise know unless you'd spent some time talking to the seller. Then, put your recasting skills to the test with your Recasting Spreadsheet from lecture 24. A report from the Business Reference Guide is also available so you can interpret the industry data on ice cream shops. 

Brandi Royster is a total rockstar and she was kind enough to share years of industry insights with us. In our discussion, we tackle some tough topics such as where brokers get it wrong, the wacky expectations of sellers, and what new brokers can do to increase their confidence when it comes to the numbers.

Don't pass "go" before you do these things. Every broker is super excited to start marketing their new listing, but the deal may get sloppy if you don't take care of the basics. In this section, you'll learn how to CYA and become a super-prepared broker.

The better a broker knows their forms, the more confidence they'll have when it counts. Follow along as I go over my own listing agreement. It won't be the same as yours, but the basics will always be the same. After the lecture, download the listing agreement so you can read over it at your own pace.

Why does confidentiality matter and how the heck do you market your listing confidentially? This section gives you some tips and tricks on how to market your listing and stand out from the crowd.

Here we'll review one of the most basic pieces marketing of marketing collateral in a business broker's tool kit - the one pager!

You may hear tenured brokers bemoan working with buyers and you'll soon find out why. Although they're key to any transaction, knowing how to handle them can save you loads of time, money, and energy.

For any of you wanting to try your hand at buyer-representation, I included a one-pager that outlines the process. These engagements can be tough to get, but the retainer helps offset the straight-commission deal flow.

A great broker understands that following certain systems during a transaction is the key to a smooth deal. Nowhere is that more evident than working with buyers. Find out how you can maintain control of the deal by properly reviewing important documents with buyers.

This is such an exciting part of the process! New brokers feel a dangerous mix of over-eagerness and dread as they try to navigate working with buyers. The confusion of "what do I do with who and when" can feel overwhelming. That's why it's important to lock down this part of the deal flow - from inquiry to offer. The better you know it, the less you'll get pushed around! 

How many times have you heard me say it so far, "The better you know your forms, the better broker you'll be"? Take this to heart brokers! Yes, my form will look different than yours, but the mechanics are the same. Watch the video, download my offer to purchase, and start studying - it'll pay off! 

Gain insights into the common questions that come up during this part of the deal flow and how to address them. Being able to guide buyers and sellers through this part of the transaction is crucial as emotions can run high as closing day approaches.

This lecture goes over the step-by-step process of what most deals look like between offer and closing. Download the accompanying closing checklist for reference.

Who better to talk about closings than an attorney who does this every day? We talk about the good, bad, and ugly when it comes to business brokerage transactions.

Growing your team of complimentary business professionals is key to a broker's success. While you're out there networking, be sure to meet plenty of lenders, lawyers, accountants, etc. They will not only help you close more deals, but they'll probably start sending deals your way. Remember, everyone loves knowing a business broker! 

You did it! Let's count your wins as we recap all that you've learned during this course. ??