A Q u a r t e r l y D i g i t a l P u b l i c a t i o n o f t h e I n t e r n a t i o n a l B u s i n e s s B r o k e r s A s s o c i a t i o n
T H E B E S T I N S I G H T S O N B U Y I N G A N D S E L L I N G S M A L L B U S I N E S S E S
The insights and opinions expressed herein are those of the authors and do not represent professional counsel nor an endorsement by the IBBA.
Plus Insights on:
+ Can You Sell a Business if the Owner has Died?
+ How to Use the Market Pulse Report to Get More Clients
+ The Potential Impact of Mass Deportation
on Small Businesses with Undocumented Workers
+ Legislative Updates and More!
By Pino Bacinello,
2024 IBBA Chair
Looking Back, Moving Forward:
A Journey of Growth and Togetherness
Winter 2024
WINTER 2024
The best insights
on buying and selling
small businesses
8
14
18
24
LETTER FROM THE CHAIR
CAN YOU SELL A BUSINESS IF THE OWNER HAS DIED?
HOW TO USE THE MARKET PULSE REPORT TO GET MORE CLIENTS
THE POTENTIAL IMPACT OF MASS DEPORTATION
ON SMALL BUSINESSES WITH UNDOCUMENTED WORKERS
LEGISLATIVE UPDATES
In this Issue
WINTER 2024
Dear IBBA Members, Friends and Colleagues:
I recall twenty-plus years ago, fellow members asking
the questions: “How can we create a greater awareness
that we exist?” and “How do we make more sellers
aware of us and how important our role is?” These
questions have continued over the years and we still
hear them today. But the IBBA has been listening, and
has begun to answer.
Following groundbreaking research into the
perceptions of small business owners, IBBA embarked
on the most significant investment in its history to
begin closing this knowledge and awareness gap
that exists. Clearly, many small business owners
underestimate the complexities involved with selling
a business (o�en to the detriment of themselves,
their employees, and their communities), and/or they
don’t know that a Business Broker is the professional
advisor they need.
To overcome this, IBBA partnered with a professional
digital marketing firm to create and launch
SellYourWay.org, a not for profit, educational website
for business owners that seeks to empower them
with accurate and valuable information on how to
successfully transfer business ownership ( and why
a Business Broker is an essential piece of the puzzle).
So far in 2024, IBBA has invested $235,687.56 in the
campaign and is prepared to invest another $250,000
in 2025.
A MULTIFACETED APPROACH TO EDUCATION.
This initiative is comprehensive, incorporating a
wide array of resources designed to reach business
owners where they are. Experienced members have
developed (and hoping that many more of you will
continue to develop) a series of white papers that
delve into critical topics such as business valuation,
ownership transition, retirement planning and
more. These documents are not only informative
and educational but also practical, offering actionable
advice that business owners can apply to their own
situations. Through quality education they then
begin to understand that Business Brokers are the
credible and trusted advisor they need.
In addition to white papers there have been
newsle�ers, social media posts and press releases
to promote the education and drive visitors to the
website. Once there, they can dive into additional
content, navigate thru the interactive Business Sales
PINO BACINELLO
CBI, MCBI, M&AMI | 2024 IBBA Chair
Looking Back, Moving Forward:
A Journey of Growth and Togetherness
Process timeline or engage in a newly released forum
for questions and answers. Combined, this program
deploys the latest best practices and advancements
in content, SEO and paid digital strategies to get our
message in front of small business owners.
ARE WE MOVING THE NEEDLE?
At this stage, the IBBA has had three full months of
media buy investment to proliferate our message.
This is what we know so far:
• Collectively, our paid placements have had
41,596,472 impressions.
• 15,857 people have visited the SellYourWay.org
website, with an average engagement of 5:19
minutes.
• 1,703 people have visited the Find A Business
Broker page on IBBA.org from SellYourWay.org.
• Find A Business Broker searches are 58%
higher than last year for the same three-month
period.
• Broker Contact form completions from
members’ profile pages are up for the same
period by 33.5%.
Given these early-stage metrics, we believe the needle
is moving but know that a continued, significant
financial commitment will be required to achieve our
Vision.
We are excited to share that, even with limited
time on the market, the quality of the website is
gaining recognition and has already earned awards
of excellence from the Horizon Interactive Awards
Program, 2024 Silver Award Winner - Websites, 2024
Bronze Award Winner - Web Video Short, and the 2024
Silver Award Winner-Website Advertising,
LETTER FROM THE CHAIR
23RD ANNUAL
AN INTERNATIONAL, INTERACTIVE MEDIA COMPETITION
Design a New Website
for IBBA
WEBSITES - PROFESSIONAL SERVICES
Google Display Ads
with Placement on
“Online Publication for
Business Owners”
WEBSITES ADVERSITING - ONLINE ADS
YouTube video for IBBA
website launch to educate
Small Business Owners
VIDEO - WEB VIDEO SHORT
2024
WINTER 2024
MOVING FORWARD:
THE IBBA NEEDS YOUR INVOLVEMENT.
As we move forward with this initiative, I want to
emphasize that this is a collective effort. We are
thankful for the valuable content contributions
many of you have already made. In order to keep the
platform dynamic and relevant we need a continuous
flow of new material – and we know our IBBA
members are the best source. If you are interested
in contributing your insights, please let us know at
admin@ibba.org and if your submission is published
you’ll be featured as an Expert Contributor.
We also encourage everyone to use and share
SellYourWay.org with sellers, prospects and colleagues.
We need to leverage our 3,000 membership to our
advantage. If all of us simply propagated the website
and our MarketPulse research data, our impact would
be widespread. The world would surely know who
Business Brokers are!
And let us never forget what’s at stake here. When
a business owner fails to sell his/her business
successfully the negative impact is widespread,
representing a loss of income and aspirations for
individuals, families and neighborhoods. So we MUST
succeed in spreading our message. IBBA has stepped
up in a big way to lead the way, but it will take all of us
working together.
REFLECTING ON THE PAST
WHILE EMBRACING THE FUTURE.
We have come a long way since the founding
visionaries of the IBBA established this incredible
organization to enhance the collective knowledge
of the business brokerage community. Today, our
membership has grown significantly compared to the
early days of the IBBA over 40 years ago.
As I near the end of another term as Chair of this
remarkable association, I reflect back at my own 20
years in business brokerage and can only be ever so
grateful to the IBBA and the many mentors, teachers,
friends and colleagues who have all contributed to
some degree or other to who, and where, I am today.
And let us never forget what’s at stake here. When a business
owner fails to sell his/her business successfully the negative impact
is widespread, representing a loss of income and aspirations for
individuals, families and neighborhoods. So we MUST succeed in
spreading our message. IBBA has stepped up in a big way to lead the
way, but it will take all of us working together.
Together, we engaged in a rich tapestry of experiences
that have profoundly shaped our collective journey. We
learned from one another, exchanged valuable ideas,
and contributed our unique perspectives. Along the
way, we faced challenges that tested our resolve but
brought us closer together. We supported each other
through tough moments, celebrated our victories with
laughter, and even Prosecco, and shared tears in times
of adversity or the loss of colleagues. This collaborative
spirit not only strengthened our bonds but also drove
us toward the be�erment of our profession and
organization.
In ending this article and my term as Chair, I want to
express my deepest gratitude to each and every one of
you for enabling me to serve, and for your continued
dedication to the IBBA and our profession. Thank
you also to the remarkable team at AllyAMC (Our
Executive Directors and Staff). We could not have had
the resounding success we have enjoyed without them
and their continuous care and dedication to the IBBA,
and us all as a community.
The IBBA: Over 3,000+
Members Strong, and Climbing!
Last, but certainly not least, I extend my heartfelt
gratitude to my fellow board members—current, past,
and future. Your leadership is invaluable and serves
as a profound source of inspiration, motivating us
all to pursue excellence in our business brokerage
profession. Together, we are empowered to elevate
our standards, refine our practices, and advance our
mission to become exemplary professionals, dedicated
to serving our clients and the industry with integrity
and passion.
With Erin Crawford stepping in as our incoming Chair
for 2025 and James Parker set to assume the role of
Chair in 2026, we are fortunate to be guided by such
adept leadership. I am excited to witness continued
IBBA success under their headship as I transition into
the role of Past Chair.
Tank you! for being a part of this journey.
Warmest regards,
PINO BACINELLO | CBI, MCBI, M&AMI
2024 IBBA Chair
WINTER 2024
PATRICK (PAT) MCADAMS
Can You Sell a Business
if the Owner has Died?
I received a phone call from an attorney whom I have
routinely worked with. She asked if I would talk to
one of her clients about selling a business. There was a
catch, the owner had died earlier in the year, so I would
be dealing with a Trustee. The company had a key
employee (plant manager) who was helping the Trustee
and CPA run it. The company had about $225,000 in
EBITDA and was going strong.
Before saying yes, I told the a�orney I needed to do
some research and get back to her. I reached out to
brokers at Murphy Business Sales and posed the
question, “Can you sell a business if the owner has
died?” I laid out the few details I had from the a�orney
and waited.
I initially thought my chances of finding another
broker who had experience selling a business with
a deceased owner were slim, akin to finding a buyer
for a niche flower shop. However, several brokers
surprised me by sharing their experiences with similar
situations. They had successfully closed deals where
the owner had passed away and a trustee or family
member was involved.
Key factors they highlighted included maintaining
clean financial records, securing access to key
employees and CPAs, and demonstrating the business’s
strong performance. They also cautioned that
certain challenges might arise, such as the inability
to provide representations and warranties or offer
seller financing. Additionally, the involvement of a key
employee could potentially complicate the deal.
Armed with information, I agreed to speak to the
Trustee about the business. It was a contract screen
printing and embroidery business and had been in
business for 38 years (it was founded by the deceased
owner’s father). The owner’s family was not involved
in the business. The Trustee had spoken to and been in
negotiations with a few buyers who approached him
once the owner passed away. The plant manager also
submi�ed an offer. All the offers received had been
lowball offers hoping to capitalize on the death of the
owner. The company continued to operate at a profit,
and the plant manager wanted to stay on (even though
her offer to buy the company was turned down).
I outlined my approach to the Trustee, emphasizing
the importance of beginning with a business valuation.
He requested I contact the CPA to gather financial
details. A�er presenting the valuation, the Trustee
and CPA were pleasantly surprised. My estimation
exceeded their previous offers. Despite this, the Trustee
was still hesitant to list the business with me.
A month later, the Trustee contacted me again,
expressing interest in listing the business. However,
he presented a lengthy list of terms and conditions
that would restrict my ability to effectively market
the business. I explained that I could only assist him
if I were granted the freedom to work through the
selling process. One of my essential conditions was
unrestricted access to the CPA. She, in collaboration
with the Plant Manager and Bookkeeper/HR
Manager, would be crucial to providing the necessary
information for a successful sale, as they possess
in-depth knowledge of the business. Unfortunately,
the Trustee insisted on controlling all aspects of the
process, and I was compelled to decline the listing.
WINTER 2024
Fast forward six weeks and the Trustee finally agreed
to list the business. We were off and running…..
except we weren’t. As I collaborated with the CPA
and Plant Manager to create a Confidential Offering
Memorandum, the Trustee kept denying my
information requests that I felt were important to
sell the business. A�er a few phone calls with him,
the Trustee finally had a change of heart. As soon as
the business hit the market in early 2024, something
happened that I didn’t expect, I had 25-30 plus hits
on the business in just over two weeks (I had over 87
interested parties in total). We fielded seven offers at
this point.
We had to negotiate a few things to finally get an
accepted offer. The Trustee accepted an offer from
an out-of-state buyer who owned a similar company.
Unfortunately, towards the end of their due diligence,
YTD financials came in and both revenue and net
profit were down considerably from the previous year.
That put a scare into the buyers and SBA. Soon a�er
the financials came in, the SBA said they couldn’t
finance the deal, and the buyers terminated their offer.
By now we were in July.
I was fortunate to have 2 other buyers in my back pocket
that were still interested. Fast forward to the middle of
August, one buyer submitted a full-price cash offer with a
closing date set for early October 2024.
We had a few challenges along the road to closing.
A $20,000 air compressor died (which was vital to
production), a few issues popped up with the Landlord,
and the buyer’s a�orney was insistent on the Trustee
providing reps and warranties (which by law they are
not required to). Luckily, we were able to ride out the
storm and close. Everyone was happy!
A FEW OTHER NOTES :
1. Set expectations with whomever you work with
to sell it. Make sure they understand that time is
of the essence. The Trustee owned his own law
practice and was very slow to respond to any of
my calls and emails and to make decisions.
2. Know who the decision maker will be to accept
offers. The Trustee told me he would be making
the decision, but once we had offers on the table,
the Trustee decided to review each of them
with the family. This caused a 2-week delay and
caused some angst with the buyers.
3. If the business is leasing the real estate, try and
get the landlord involved right away. When we
walked through the building about 2 weeks prior
to closing with the buyer and landlord, about
$10k-15k in deferred repairs were discovered (the
previous owner was responsible for the repairs).
This had to be dealt with quickly and resolved
prior to closing.
4. The plant manager proved vital to ge�ing the
deal done. She helped me coordinate building
tours and even met me with a few of the buyers
to give plant tours. She provided insights that the
Trustee did not. She also did some interviews
with the buyers once under contract.
5. The a�orney, whom the Trustee hired to
represent him during the process was invaluable
in the transaction, she acted as a buffer and voice