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
Embracing Our Legacy,
Shaping Our Future
Te insights and opinions expressed herein are those of the authors and do not represent professional counsel nor an endorsement by the IBBA.
Summer 2024
Plus Insights on:
+ Business Brokering
+ Inventory in Business Brokerage
+ Why Owners Should Hire an IBBA Member Broker
+ Overcoming Conversational Blindspots
+ Te Path to Authority for Business Brokers
+ Legislative Updates
and More!
By Pino Bacinello,
2024 IBBA Chair
SUMMER 2024
Te best insights
on buying and selling
small businesses
8
12
16
20
24
28
LETTER FROM THE CHAIR
BUSINESS BROKERING: CHALLENGES, APPROACHES,
AND KEYS TO SUCCESS
INVENTORY IN BUSINESS BROKERAGE. SOME THOUGHTS
MORE TRUTH THAN FICTION –WHY A BUSINESS
OWNER SHOULD HIRE AN IBBA MEMBER BROKER
OVERCOMING CONVERSATIONAL BLINDSPOTS:
KEY TO EFFECTIVE BUSINESS BROKERING
SPECIALIZING IN AN INDUSTRY NICHE: THE PATH
TO AUTHORITY FOR BUSINESS BROKERS
LEGISLATIVE UPDATES
In this Issue
SUMMER 2024
Atending this past amazing IBBA Conference in
Louisville, on this 40th birthday of the IBBA, I was
deeply humbled by being inducted in the inaugural
IBBA Hall of Fame. Humbled because it made me
reflect on what I gave to the IBBA to deserve such
recognition. In reflecting on my past 20 years
involvement, I can honestly state that much of
what I have learned and know, came from my
participation in the IBBA. Te multiple commitees
I served on, articles I wrote, courses I created and
taught, workshops presented and serving twice as
Chair are just some of those activities. I say all this
because, as much as it appears I have done or given
to the profession, the profession has given me so
much more in return. Te IBBA can do the same for
you, but it all starts with your participation, and
involvement.
As we reach the midpoint of this 40th anniversary
year, I reflect on our collective achievements, and
look forward to the exciting opportunities that lay
ahead for us all. Te IBBA has always been a beacon
of professional excellence, camaraderie, education
and progress. Our strength lies in the dedication
and active involvement of our members. Now more
than ever, as we continue to grow, we need each of
you to engage, participate, and contribute to the
thriving business brokerage community we are
building together. Share in our VISION and help
sustain our joint growth and success.
THE POWER OF PARTICIPATION
Starting with our founders, our association
was built on the principle of volunteerism. All
initiatives that fall within our focus areas, have
been, and are, driven by you, the members, who
generously and selflessly donate their time,
knowledge, skills, and passion, to drive the
success we see here today. As someone who has
served in various capacities over the last 20 years,
have witnessed first-hand the transformative
power of member participation.
Volunteering within IBBA is not just about
fulfilling a duty, it is about making a tangible
impact on our business brokerage profession;
on each other’s professional journey; and on our
surrounding communities. Your involvement
can take many forms, from participating in
commitees and leadership, to writing and/or
PINO BACINELLO
CBI, MCBI, M&AMI | 2024 IBBA Chair
Embracing Our Legacy,
Shaping Our Future
presenting subject mater workshops, auditing and
teaching classes, sharing insights and expertise
through webinars and articles, becoming a mentor
to new members, or simply participating and
sharing in conversations at conferences. Each
contribution, no mater how small, helps us grow
stronger and more resilient, and impactful.
OPPORTUNITIES TO GET INVOLVED
Tere are many ways to start or expand your
involvement with the IBBA.
Commitees And Task Forces: Join one of our
many commitees. Whether your interest lies
in Education, Membership Growth, Conference
Planning, Women’s Empowerment or others,
there is a place for you to make a diference.
Commitees are the lifeblood of our organization,
driving essential initiatives that benefit all
members. Tey are also the starting point for one’s
road to leadership. Some one once said, “If serving
is below you…then leadership is beyond you.”
Member Mentorship: Experienced professionals
like you have a wealth of knowledge to share. I
have had the blessing of working within multiple
industries and I can tell you that this is by far,
the most giving and sharing industry I have ever
known. I have personally been a beneficiary
of such wide-open sharing. By becoming a
mentor, you can guide the next generation of
business brokers, and help them navigate the
complexities of our profession while fostering a
culture of continuous learning, ethics, integrity
and professionalism. If you are a CBI, I encourage
you to start this mentorship by volunteering with
our “Ask A CBI®” program (contact Emily Bowler at
ebowler@ibba.org if interested).
Event Participation: Our conferences,
webinars, and networking events ofer valuable
opportunities to connect, learn, and share. Atend
these events not only to enhance your own
knowledge and gain insights, but also to contribute
your perspectives and experiences. Consider
presenting at a webinar or leading a workshop at
our next conference. Check our Events page ofen,
for upcoming opportunities, and stay connected
with our social channels for the latest updates.
Content Creation: Our conferences, webinars, and
networking events ofer valuable opportunities to
connect, learn, and share. Atend these events not
only to enhance your own knowledge and gain
insights, but also to contribute your perspectives
and experiences. Consider presenting at a webinar
or leading a workshop at our next conference.
Check our Events page ofen, for upcoming
opportunities, and stay connected with our social
channels for the latest updates.
BENEFITS OF INVOLVEMENT
Active participation in the IBBA brings numerous
benefits. Beyond the satisfaction of contributing
LETTER FROM THE CHAIR
SUMMER 2024
to the advancement of our profession, you gain
access to a network of like-minded professionals,
opportunities for personal and professional
growth, and the chance to shape the future of
the business brokerage community. Involvement
enhances your visibility and reputation
within the industry, opening doors to new
opportunities and collaborations, and including
leadership.
A CALL TO ACTION
As we navigate the second half of 2024, I
encourage each of you, to reflect on how you can
contribute to our vibrant business brokerage
community. Remember that it is impossible to
give without receiving back, (ofen much more
than you have given). Consider where your
passions and skills align with our needs and
take the step to get involved. Together, we can
achieve great things and continue to uphold
the high standards and values that define us
as the IBBA.
Your participation is not only a gif to the
association, but also an investment in your own
professional development. Let us embrace the
spirit of volunteerism, support one another,
and work collaboratively to shape the future
of our profession.
In closing, I am compelled to draw each and
everyone’s atention to our most important and
overarching “END” of our organization (this
may also be considered our mission, or reason
for being):
Tank you for your dedication and
commitment to the IBBA. I look forward
to seeing the incredible contributions you
will make in the coming months, and the
continued success of our Association as we
embrace our legacies and shape our future.
Warmest regards,
PINO BACINELLO | CBI, MCBI, M&AMI
2024 IBBA Chair
Te IBBA exists so that
business brokers, transaction
advisors and business
intermediaries have access to
other Members and groups
of this community, whereby
they receive professional
support, services and benefits
and where the value the
Members receive far exceeds
the cost to them.
Te IBBA: Over 2,800+
Members Strong, and Growing!
SUMMER 2024
HOUMEHR MIKE PANOUSSI
Business Brokering: Challenges,
Approaches, and Keys to Success
Business brokering, a critical segment in the
world of commerce, involves facilitating the
sale and acquisition of businesses. Tis field
is intricate, requiring a blend of financial
acumen, marketing expertise, and negotiation
skills. Business brokers act as intermediaries,
connecting sellers with prospective buyers and
ensuring that the transaction process is smooth,
transparent, and beneficial for both parties.
Despite its potential for lucrative rewards,
business brokering presents a unique set of
challenges. Understanding these challenges
and the strategies to overcome them is vital for
success in this profession.
CHALLENGES IN BUSINESS BROKERING
1. Valuation Complexity: One of the foremost
challenges is accurately valuing a business.
Unlike tangible assets, the value of a
business includes intangible elements such
as brand reputation, customer loyalty, and
intellectual property. Brokers must use
various valuation methods, such as income-
based, market-based, and asset-based
approaches, to arrive at a fair price.
2. Confidentiality Concerns: Maintaining
confidentiality is paramount in business
brokering. If employees, customers, or
competitors learn about the sale prematurely,
it can jeopardize the business’s operations
and value. Brokers must navigate this by
carefully screening potential buyers and
requiring non-disclosure agreements (NDAs).
3. Market Dynamics: Te market for buying
and selling businesses can be volatile.
Economic conditions, industry trends,
and regulatory changes can impact the
desirability and value of a business. Brokers
need to stay informed about these factors
and advise their clients accordingly.
4. Emotional Stakeholders: Business owners
ofen have a deep emotional atachment to
their businesses, which can complicate the
negotiation process. Tis atachment can
lead to unrealistic price expectations or
reluctance to part with the business. Brokers
must manage these emotions and facilitate a
rational decision-making process.
5. Buyer Qualification: Finding the right
buyer is crucial but challenging. Brokers
must assess potential buyers’ financial
capabilities, experience, and intentions
to ensure they can successfully run the
business. Tis requires thorough veting
and ofen involves overcoming buyers’
apprehensions and doubts.
SUMMER 2024
APPROACHES TO BUSINESS BROKERING
1. Comprehensive Market Analysis: Conducting
a thorough market analysis helps brokers
understand current trends, comparable
sales, and industry benchmarks. Tis
data is essential for seting realistic price
expectations and developing efective
marketing strategies.
2. Robust Marketing Strategies: Efective
marketing is key to atracting potential
buyers. Brokers use various channels,
including online business-for-sale
marketplaces, industry publications, and
direct outreach. Crafing compelling listings
that highlight the business’s strengths and
opportunities is crucial.
3. Due Diligence: Due diligence is a critical step
for both sellers and buyers. Brokers facilitate
this process by organizing and presenting
financial records, legal documents, and
operational details. Ensuring transparency
and accuracy during due diligence builds trust
and reduces the risk of post-sale disputes.
4. Negotiation Skills: Successful brokers are
adept negotiators. Tey balance the interests
of both parties, mediate disputes, and work
towards mutually beneficial terms. Efective
negotiation requires understanding each
party’s goals, constraints, and leverage points.
5. Legal and Financial Expertise: Brokers
ofen collaborate with legal and financial
professionals to navigate the complexities of
business transactions. Tis team approach
ensures that all legal and financial aspects
are addressed, reducing the risk of future
liabilities.
KEYS TO SUCCESS IN BUSINESS BROKERING
1. Building Trust and Credibility: Trust is
the cornerstone of successful business
brokering. Brokers must demonstrate
integrity, confidentiality, and competence.
Building a solid reputation through consistent
performance and positive client testimonials
is essential.
2. Networking: A strong network of contacts
within various industries enhances a broker’s
ability to find buyers and sellers. Networking
with other professionals, such as accountants,
lawyers, and bankers, can provide valuable
referrals and insights.
3. Continuous Learning: Te business brokering
landscape is constantly evolving. Brokers
must stay updated with the latest industry
trends, regulatory changes, and best practices.
Continuous professional development
through courses, certifications, and industry
conferences is crucial.