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.
Fall 2024
Plus Insights on:
+ Key Words to Level Up Your Skills
+ Selling a Manufacturing Business
+ The Business Broker’s Secret
Weapon
+ Legislative Updates
and More!
By Pino Bacinello,
2024 IBBA Chair
The Case for Bold Focus
Leading with Purpose
and Precision
FALL 2024
The best insights
on buying and selling
small businesses
8
12
16
24
LETTER FROM THE CHAIR
THREE KEY WORDS YOU NEED TO KNOW
TO LEVEL UP YOUR BUSINESS BROKERAGE SKILLS
SELLING A MANUFACTURING BUSINESS
THE BUSINESS BROKER’S SECRET WEAPON:
LEGISLATIVE UPDATES
In this Issue
FALL 2024
Having now served twice as Chair of the
International Business Brokers Association (IBBA)
(first in 2012), it has become abundantly clear
that the principles guiding successful business
leadership also apply to leading a thriving nonprofit
association. Whether steering a company or a not-
for-profit organization, certain key questions must
be continually asked and answered. Such are some
of those essential questions:
(In full disclosure, these are not mine. John and Myriam
Carver developed these, and they also developed the
Carver Governance Model, which the IBBA has embraced
and is governed under. Also called “Policy Governance”)
WHY do we exist?
WHO are we here to serve?
WHAT do we need to do to fulfill our purpose for
those we serve?
These questions are not just philosophical musings,
but the bedrock of purposeful leadership.
As organizations grow, these principles become even
more crucial, particularly in preventing the common
pitfalls of becoming busy with activities that while
well-intentioned, do not align with the organization’s
core mission. The truth is no organization can excel
at everything. Therefore, the focus must be carefully
chosen, and fiercely maintained. No different in our
own practices, frankly.
THE TRAP OF DOING TOO MUCH
One of the biggest challenges for any organization,
particularly one experiencing growth as we recently
have, is avoiding the temptation to do everything. It’s
easy to fall into the trap of engaging in a multitude
of activities, each seemingly valuable, but only to
find that despite all this effort, li�le is truly being
accomplished especially in terms of the Why, Who
and What. The energy and resources expended
may not lead to meaningful progress toward the
organization’s core purpose.
This is where the importance of focus needs to be
clear. An organization can only be truly excellent at
a limited number of things. Therefore, defining and
commi�ing to the “Why, Who and What” which lead
to the specific actions and initiatives that align with
the organization’s core mission is critical. This is
not about doing more; rather, it is about doing what
ma�ers most.
PINO BACINELLO
CBI, MCBI, M&AMI | 2024 IBBA Chair
The Case for Bold Focus
Leading with Purpose and Precision
THE IBBA’S GUIDING PRINCIPLES
Thankfully, the IBBA has long been guided by what
we refer to as “ENDS.” Essentially these are mission
statements that clearly define our “Why and Who.” In
broad terms, our association exists to equip business
intermediaries with the knowledge, tools, and
resources needed to serve clients with excellence. Our
ultimate goal is to facilitate the successful transfer
of small businesses, thereby contributing to thriving
economies and communities. This purpose is our
constant North Star.
How we accomplish this purpose is our “What” and
where flexibility and adaptability come into play. The
strategies we employ must evolve based on feedback
from our members’ and stakeholders’ developments
within the industry, as well as the resources available
to us. However, while we must be agile in our
approach, we must also remain steadfast in our focus
on the areas where we need to be truly excellent. For
the IBBA, some of these focus areas are Education,
Certification, Engagement, and Awareness.
DEFINING YOUR OWN FOCUS
I encourage everyone, whether leading an
organization or managing one’s own brokerage or
M&A practice, or for that ma�er, oneself, or a general
business, to take the time to define ones’ own “Why,
Who, and What”. Have you wri�en down the core
purpose of your business? Do you know whom you
are here to serve, and what you must do to serve
them effectively? Documenting these elements is an
essential step towards success.
This exercise does not need to be elaborate, or complex.
In many cases, a single page will suffice. At the IBBA, we
have formalized this process through our Governing
Policy Manual which I encourage each of you review
by logging in to the IBBA member portal. Once logged
in, got to the “Quick Links” tab on the top right then
scroll down to the bo�om to “IBBA Governance”. Here,
you can review IBBA Governance webinars, access
related learning resources, and also have access to the
most recent IBBA Governance Policy Manual. Also
to view the Vision manifesto you may go to “About”
>>> “Vision” >>> “Read our full vision”. The Policy
Governance Manual and the Vision manifest serve as a
constant reference point for our decision making. They
are tools we use and return to repeatedly, to ensure that
our actions align with our purpose.
THE CHALLENGE OF FOCUSED LEADERSHIP
While the concepts of defining purpose and focus
may seem straightforward, the reality is that they are
not easy to implement. There are o�en many good
ideas and potential initiatives to choose from, but the
challenge is identifying those that best align with the
organization’s core purpose. This challenge is captured
well in the popular saying, “Good is the enemy of Great.”
In practice, achieving our goals is more o�en the
result of making the right choices among many good
options, than that of avoiding obviously bad ones.
As individuals, and as organizations, we must decide
what we will be excellent at, and then maintain a laser
focus on those activities. This requires the boldness to
reject initiatives that do not align even if, they appear
beneficial in the short term.
LETTER FROM THE CHAIR
FALL 2024
A BOLD MOVE FOR THE IBBA
This year, the IBBA has strongly emphasized this
principle of bold focus. While we are fortunate to
have strong stewardship and are right on course, we
recognize the need for periodic realignment. One
of the most significant focus areas for us has been
“our vision” that engaging a Business Broker to sell a
business should become as commonplace as using a
residential realtor to sell a home.
This is a bold move is a significant investment in
both financial, and human resources, but it is directly
aligned with our ‘Why’ and the feedback from our
valued members, and stakeholders. We are leaning
into this vision more heavily than ever, understanding
that it is a crucial step towards fulfilling our ultimate
purpose. (More to come on this soon)
THE COURAGE TO CHOOSE GREATNESS
It can be challenging to let go of good things in
the pursuit of great things. Good initiatives o�en
provide short-term gratification, and fall within
our comfort zone. They may even have been
To achieve greatness, whether in business or within an
association like the IBBA, requires bold focus. It requires
the courage to make tough choices and to stay commited
to the core mission even when it means saying no to good
opportunities. Tis is the path we are on at the IBBA, and it
is where we believe our future success lies.
identify the key areas where you must excel, and
commit to them with unwavering focus. This is
how we achieve greatness, and it is how we fulfill
our ultimate purpose and existence. Remember,
greatness isn’t just a destination, it is a journey of
growth, resilience, and self-discovery. So let us go
forth with determination and passion, knowing
that the rewards of choosing greatness are well
worth the effort it takes to get there.
Embrace the challenges, chase your dreams, and
live each day with purpose and determination.
Here’s to achieving greatness!
PINO BACINELLO | CBI, MCBI, M&AMI
2024 IBBA Chair
instrumental in ge�ing us to where we are today,
however, these same initiatives may now be the
very things holding us back from reaching the
next level. Greatness.
To achieve greatness, whether in business or
within an association like the IBBA, requires
bold focus. It requires the courage to make
tough choices and to stay commi�ed to the core
mission even when it means saying no to good
opportunities. This is the path we are on at
the IBBA, and it is where we believe our future
success lies.
In closing, I urge you to take a bold, focused
approach in your own practice and leadership,
whether you are leading a brokerage, an
association, or a team. Define your purpose,
The IBBA: Over 2,900+
Members Strong, and Growing!
FALL 2024
AUSTIN ZHAO
CBI, M&AMI, CMAP, BCA
Three Key Words You Need to Know
to Level Up Your Business Brokerage Skills
When you enter the business brokerage business,
you probably want to focus on number related
topics such as financials, valuation, and pricing.
Yes, these areas of knowledge are fundamental and
important, however, knowing numbers alone is
not enough to be a good business broker. To make
a good living or become a top producer, there are
more important things you need to know to level up
your business brokerage skills.
Reflecting on my own experience as a Business
Broker, I have identified three fundamental
concepts that are essential for achieving
exceptional results. Tese three concepts are
PEOPLE, EDUCATE, and LEAD. Understanding and
embodying these principles can truly elevate your
efectiveness as a business broker.
PEOPLE
Business brokerage is a people game, not a numbers
game. The most challenging part in this game is not
understanding the numbers, but instead dealing
with the people. Sellers, buyers, CPAs, a�orneys,
landlords, lenders, you yourself, and all the third-
party service providers are all real human beings.
Therefore, people skills play a more important
role than number skills in the business brokerage
business.
Different people, being human, each have specific
needs in the process which are not always
rational, but o�en emotional. All these factors
coming together frequently make transactions
difficult. A successful deal maker must understand
these characteristics of human beings and have
people skills such as communication skills and
interpersonal skills to deal with different people at
different stages in the process.
• Building Relationships and Trust with
Clients (People): Trust is crucial in any
business transaction, and as a broker,
establishing trust with your clients is
paramount. Your understanding of people
allows you to connect with clients on a
deeper level, empathize with their needs and
concerns, and build rapport more effectively.
• Understanding Sellers and Buyers: As a
business broker, you deal with both sellers
who want to exit their businesses and buyers
who are looking for opportunities. Having
insight into their motivations, goals, and
concerns allows you to tailor your approach
to each party to be�er facilitate smooth
transactions.
• Negotiation Skills: Negotiation is a
central aspect of business brokerage,
and understanding people is essential
for successful negotiation outcomes. By
understanding the perspectives and priorities
of both parties involved in a transaction,
you can identify common ground, negotiate
effectively, and reach mutually beneficial
agreements.
FALL 2024
EDUCATE
Before anything else, you need to educate yourself.
Business brokerage is not an easy career. It is not
even offered as a major in college. So, you need to
continuously learn more on your own volition in
order to succeed. Continuing education would include
online courses, in-person courses, conferences such as
IBBA and M& A Source conferences, and mentorship.
Specifically, finding a mentor who has experience in
the business brokerage industry can be incredibly
valuable. They can provide guidance, share insights,
and help you navigate challenges as you build your
career.
The business landscape is constantly evolving, and
staying abreast of industry trends, market dynamics,
and regulatory changes is essential for success as a
broker. Your commitment to lifelong learning, fostered
by your educational background, enables you to
adapt to new developments, acquire new skills, and
stay ahead of the curve in an ever-changing business
environment.
Second, educate sellers. As a business broker, you
o�en work with your clients, the sellers who may not
be familiar with the intricacies of selling a business.
You need to educate and guide clients through the
process, explain complex concepts in a clear and
understandable manner, and empower them to set the
right price expectation and make informed decisions
on the buyer selections. By providing valuable insights
and education, you can help clients navigate the
complexities of the selling process with confidence.
Third, educate buyers. Some buyers are experienced,
such as private equity firms in the middle market.
But most buyers, especially those in small main street
deals, are inexperienced. No ma�er if you are dealing
with an experienced or inexperienced buyer, you as an
intermediary need to educate them about the business
you represent and the process they need to follow.
Additionally, sometimes you may need to educate
the first-time business buyers who look for perfect
businesses to purchase, despite the imperfect reality of
businesses. Otherwise, if you let buyers solely do what
they want, not only can you not close the deal, but you
also waste your invaluable time.
LEAD
Each transaction has two major parties, sellers and
buyers, and frequently involves CPAs, a�orneys,
landlords, lenders, escrow agents, and other third-party
service providers. Within this process, each party
has its own needs, expectations, wants, and usually
egos. Because of these variables, deals will easily fall
apart if each party does not go in the same direction.
Therefore, strong leadership is required within the
process. You, as deal facilitator and maker, need to
lead and control the process from the very beginning
prospective stage.
The seller is the starting point of the process. Many
new business brokers are under the assumption
that they always need to satisfy their client. While
it is important to be diplomatic, you are the expert
consultant, not them. Sellers are accustomed to selling
products, not businesses, and they will o�en try to
apply their own incorrect tactics to the process which