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
Reflecting on
Our Journey and
Looking Ahead
By Kyle Griffith,
2023 IBBA Chair
The insights and opinions expressed herein are those of the authors and do not represent professional counsel nor an endorsement by the IBBA.
W i nte r 2 0 2 3
Plus Insights on:
+ Emotions in Business Brokerage
+ Risk Management
+ Due Diligence
+ Legislative Update
and More!
WINTER 2023
The best insights
on buying and selling
small businesses
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LETTER FROM THE CHAIR
ADDRESSING EMOTIONS IN BUSINESS BROKERAGE
MASTERING THE ART OF RISK MANAGEMENT
THE PIVOTAL ROLE OF THOROUGH DUE DILIGENCE
IN BUSINESS BROKERAGE
A GUIDE TO THE NEW 2023 SBA SOP
LEGISLATIVE UPDATES
In this Issue
WINTER 2023
As we navigate through the closing months of
2023, it ofers us a moment to pause and reflect
on the year that has been and the exciting
possibilities that lie ahead. Te journey through
2023 has been a testament to our resilience,
adaptability, and the collective strength that
drives our profession forward.
A YEAR OF UNPRECEDENTED GROWTH AND
ACHIEVEMENT
This year has been extraordinary for the IBBA.
We achieved a historic milestone, with our
membership reaching an all-time high of 2,879
members. This growth signifies more than just
numbers; it represents the expanding influence
and value we bring to the business brokerage
community. Each new member enriches our
community with diverse experiences and
perspectives, strengthening our collective
knowledge and capabilities.
IBBA ACHIEVES RECORD-HIGH MEMBER
SATISFACTION IN 2023
This year marks a significant achievement in
member satisfaction within the IBBA, as we’ve
reached the highest Net Promoter Score (NPS) in
our association’s history. The NPS, a key metric
for measuring customer loyalty and satisfaction,
stands at an impressive 67.4% for 2023. This is a
remarkable feat, especially when considering the
historical data: from 19% in 2015, steadily climbing
through the years to surpass our goal of 50%.
The NPS is a crucial indicator as it reflects the
likelihood of our members recommending our
association to others. In the context of varying
industry standards, where a 2003 study showed
a median NPS of 16% across multiple industries,
our score of 67.4% is not just a milestone but a
testament to the value and excellence we deliver
to our members. Achieving such a high score
underscores our commitment to providing
outstanding education and support, and it speaks
volumes about the trust and confidence our
members have in the IBBA.
THE BACKBONE OF OUR SUCCESS: CERTIFIED
BUSINESS INTERMEDIARIES
Our Certified Business Intermediaries (CBIs)
continue to set the standard for excellence. With
a robust count of 487 CBIs, we demonstrate
professionalism and expertise, underscoring the
KYLE GRIFFITH
CBI, CM&AP | 2023 IBBA Chair
Embracing Resilience and Growth:
Reflecting on Our Journey and Looking Ahead
depth of talent within our ranks. Our CBIs play
a critical role in upholding our reputation for
quality and integrity in the business brokerage
community.
FORGING STRATEGIC PARTNERSHIPS
This year, we partnered with the Texas
Association of Business Brokers (TABB).
Anticipated to bring in an additional 120
members, this strategic collaboration, set to roll
out in January 2024, marks a significant step in
our journey toward nationwide cooperation and
growth. This partnership is a testament to our
commitment to building more robust networks
and enhancing member value.
CHAMPIONING DIVERSITY AND INCLUSION
In our commitment to fostering a more inclusive
and dynamic business brokerage community, we
launched a new student scholarship program to
increase the number of young minorities in our
profession. A�racting younger, diverse individuals
is crucial for bringing fresh perspectives and
ideas, enriching our profession, and aligning
with our vision of creating robust economies and
communities.
HISTORIC CONFERENCE SUCCESS: A
MILESTONE EVENT
Our May 2023 conference was a landmark event
in IBBA’s history, a�racting 900 a�endees—the
largest in our history. This gathering wasn’t
just about numbers; it was a vibrant forum for
exchanging innovative ideas, best practices, and
strategies. The conference’s success illustrated
our unwavering commitment to providing top-
tier educational opportunities, fostering a strong
community, and se�ing industry benchmarks.
RECOGNIZING EXCELLENCE: CELEBRATING
OUR MEMBERS’ ACHIEVEMENTS
At our 2023 Annual Conference, we recognized a
record number of award recipients from over 1,800
deal submissions. This year’s awards were notably
diverse, with many female business brokers recognized,
highlighting their vital role in our industry.
There were 240 awards handed out to a total of
194 unique members. Each award won symbolizes
hard work, persistence, and professional excellence,
reflecting the growing recognition of business
brokers in successful business transfers.
ADVOCACY IN ACTION: THE BROKERAGE
SIMPLIFICATION ACT
This year’s key milestone was the passage of the
Brokerage Simplification Act. This landmark
legislation introduces a new exemption for M&A
Brokers, exempting brokers from securities broker
registration under the Securities Exchange Act of
1934. Due to this new exemption, hiring business
brokers and M&A advisors to sell companies has
become more affordable for business sellers. This
exemption also gives the business owner more
flexibility in deciding who will represent them in
the sale of their business.
LETTER FROM THE CHAIR
WINTER 2023
LOOKING AHEAD: BUILDING ON OUR SUCCESS
As we look to the future, these achievements
provide a solid foundation to build on. Our
increasing membership, the diversity within our
ranks, and the success of our annual conference are
just the beginning. The year ahead holds immense
growth, innovation, and success potential.
We will continue to focus on expanding our
educational offerings, enhancing our regional and
national events, and fostering a community that
supports and upli�s each other.
We aim to maintain and build upon our success,
creating an even more robust and dynamic IBBA.
A CALL TO CONTINUED ENGAGEMENT
AND GROWTH
I urge each of you to stay engaged with our
community. Please take advantage of the learning
opportunities, a�end our conferences and regional
events, join a commi�ee, and participate actively in
our various initiatives. Your involvement is crucial
to our continued success and the advancement of
our profession.
APPRECIATION FOR THE PILLARS OF OUR
ASSOCIATION
As I reflect on my tenure as Chair, I extend a
heartfelt thanks to the dedicated management and
staff of the IBBA, whose tireless efforts have been
the backbone of our association’s achievements.
Your hard work, unwavering dedication, and
relentless pursuit of excellence have not gone
unnoticed and are deeply appreciated.
To all the volunteers who have generously given
their time and expertise, your contributions are
invaluable. You are the unsung heroes who help
drive our initiatives and programs forward, and
your commitment is a testament to the strength of
our community.
And to my fellow board members, your collaboration
and support have been pivotal in our journey
together. Your insights, guidance, and leadership
have been crucial in steering the IBBA towards new
horizons and successes. Together, we have faced
challenges, celebrated victories, and continually
pushed the boundaries of what we can achieve.
A special acknowledgment goes to Randy Bring,
my predecessor, whose guidance and leadership
have been instrumental in shaping the success we
enjoy today. As we look toward 2024, I am pleased
to welcome Pino Bacinello as the incoming Chair.
Under his leadership, I am confident that we will
continue to thrive, embracing the new challenges
and opportunities that await us with the same
resilience and determination that have been the
hallmark of our journey together.
Thank you for your unwavering support of the
IBBA. Here’s to a brighter and more prosperous
future than ever, driven by our collective efforts and
shared vision.
KYLE GRIFFITH | CBI, CM&AP
Chair of the Board of Governors International
Business Broker Association (IBBA)
Managing Partner
The NYBB Group
SEE REPORT
Get the insights you need into Main
Street and Lower Middle Market transactions
with the Q3 2023 Market Pulse Report!
WINTER 2023
WAYNE WRIGHT
CBI, CM&AP, MCBI
Addressing Emotions
in Business Brokerage
If you have been a business broker for a
significant amount of time, you are likely aware
of the constant emotional challenges we face in
Main Street and lower M&A. We ofen deal with
inexperienced buyers and sellers, where some
sellers are deeply atached to their businesses
while others can’t wait to exit them. You’ve
probably come to understand that a deal ofen
falls apart multiple times before it finally crosses
the finish line to closing. In the world of business
brokerage, it can be unrealistic to expect our
industry to become less emotionally demanding,
especially considering the ongoing uncertainty
in our world and the unique challenges brought
about by our evolving economy, notably in the
afermath of the COVID-19 pandemic.
Consider the events of this year alone. At the
outset, I successfully facilitated two substantial
transactions, one of which amounted to nearly $3
million. Concurrently, I had ongoing dealings from
the previous year that carried into this one. There
was a sense of optimism that 2023 would go down
in the books as a remarkable year, prompting
thoughts of indulging in a well-deserved treat.
However, as we progressed into the third quarter, a
series of setbacks unfolded. A significant business
deal, involving a $5 million transaction, faltered
several times during the due diligence process. On
the third a�empt, just when it seemed like success
was imminent, the SBA lender unexpectedly
flagged the buyer’s high debt-to-income ratio. This
led to a demand for the liquidation of another
property, a condition the buyer was unwilling to
meet. Consequently, the same business suffered
another blow when a major supplier relocated
outside the U.S., resulting in a substantial decrease
in its value and necessitating its withdrawal from
the market.
On a different front, another business this year
encountered a unique challenge. Despite its
thriving status, it was temporarily removed
from the market with the decision to await the
completion of its 2023 taxes. The plan is to relist
it next year with the anticipation of significantly
increasing the asking price.
Tere was a sense of
optimism that 2023 would
go down in the books as a
remarkable year, prompting
thoughts of indulging
in a well-deserved treat.
However, as we progressed
into the third quarter, a
series of setbacks unfolded.
WINTER 2023
Furthermore, a business that should have
concluded earlier this year faced complications
with the landlord, lease, and hurdles in obtaining
a liquor license. Obstacles were continually
arising, creating a series of challenges for its
successful closure. In just three months of the
year, my confidence had soared, and I was on
top of the world, only to experience a sharp fall
from success to adversity. Can you relate to this
rollercoaster scenario?
I once came across an article that mentioned nearly
half of all entrepreneurs are affected by at least
one mental health condition, such as anxiety, ADD,
bipolar disorder, and more, and about one-third
of them experience two or more mental health
conditions.
This emotional landscape adds depth and
complexity to the process, requiring brokers
to wear both a business hat and an emotional
intelligence cap. Acknowledging and understanding
the diverse emotions tied to a business sale is of
paramount importance. Sellers may experience a
mix of nostalgia, anxiety, and anticipation.
Buyers, on the other hand, might grapple with
excitement and trepidation about the future. As a
broker, recognizing and empathizing with these
emotions is key to forging meaningful connections
and facilitating a smoother transaction. It’s vital to
acknowledge the emotional toll that brokering can
take on all parties involved in the transaction and
to manage this burden effectively to perform well.
Shi�ing from a negative to a positive outlook
is crucial when emotions take a detour into
negativity during the business sales process. Stress
is an integral part of the business sales process,
and recognizing stress is crucial. Various factors
contribute to stress such as navigating egos
(including our own), interactions with challenging
individuals, intricate transactions, meeting client
expectations, and contending with uncertainties
in deals. Practical tips for stress management
include time management, delegation, practicing
mindfulness and meditation, regular exercise, and
maintaining a healthy work-life balance. A healthy
work-life balance prevents burnout, enhances the
quality of life, and ensures long-term sustainability
in our brokerage practice.
Building emotional intelligence, o�en referred to as
EQ (Emotional Quotient), is critical for a business
broker. EQ involves recognizing, understanding,
managing, and effectively using one’s own
Navigating the intricate
world of business sales is a
journey filled with intense
emotions for all parties
involved—the buyers, sellers,
other advisors, and notably,
the business brokers