Spring 2021
The insights and opinions expressed herein are those of the authors and do not represent professional counsel nor an endorsement by the IBBA.
Proud to Be a
Business
Broker
Lisa Riley, 2021 IBBA Chair
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
Plus Insights on:
+ New Relief Bill
+ Backing Up Answers with Market Pulse
+ Legislative Updates
+ State of Real Estate Investments
+ The Lasting Impact of 2020
The best insights on buying
and selling small businesses
In this Issue
LETTER FROM THE CHAIR
NEW RELIEF BILL HELPS BUSINESSES
WHO SAYS SO? BACKING UP ANSWERS WITH MARKET PULSE
LEGISLATIVE UPDATES: HR 935
A GUIDE TO EXPANDING REAL ESTATE INVESTMENTS
DURING A GLOBAL CRISIS
THE LASTING IMPACT OF 2020
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16
20
Dear Friends,
Let me start by first thanking you for the honor of serving as your Chair this year.
I also must once again acknowledge and thank Dr. Barry Berkowitz for his service
and contributions as Chair last year. Under his leadership and with the support of many, we all got
through some extremely challenging circumstances and, in some ways, are stronger for the struggle.
I have been a Business Broker for 10 years now, and an IBBA Member for each of them. Like many
before me in this position, I have a love for our industry and a passion for the IBBA that fuels my desire
to give back. While it may not be the easiest time to be a Business Broker, I can honestly say I have
never been prouder to be a Business Broker than right now.
In our new Vision release, the IBBA makes a compelling declaration on the vital role Business Brokers
play in helping people and communities thrive. It’s a way to think and talk about ourselves that many
of us probably don’t do. We’ve always inherently known that our work was important, but to see it
expressed so powerfully and eloquently is truly invigorating. I’ve personally read it several times and
already shared it several times more.
When is the last time you really thought about the broad impact you have by facilitating the sale of a
business? It’s because of you…
• Sellers can move to the next dream.
• Buyers have their chance at opportunity.
• Employees can pursue their goals.
• Communities grow stronger.
SPRING 2021
Proud to Be a Business Broker
Lisa Riley, CBI, CM&AP, CBBI | Delta Business Advisors
It’s honestly been a while since I’ve reflected on that myself. Time in this business (and trying to
survive a pandemic) can make you forget these things. Let me remind you: What you do every day is
important and ma�ers.
In these times, the skills of the Business Broker are more crucial than ever. Businesses are still selling
but the level of complexity is even greater. Without the benefit of your knowledge and expertise,
sellers and buyers will be especially prone to missteps. As we know, a business that shuts down for
lack of ownership, or transitions poorly to the demise of either a seller or buyer, hurts the people and
community around it.
The IBBA does many things to grow the awareness, and enhance the reputation of, the Business Broker
- but we each have an individual responsibility to do the same. If we want more people to know us as
specialized, trained professionals then we must first be such, and then communicate that with one,
powerful voice. This is especially true for our IBBA Members - you set the bar in our industry and
should be the leading champions of spreading the IBBA’s Vision.
Most importantly, keep standing proud of your cra� and investing in your abilities during these
continued strange times. If you can, join us for the rescheduled Conference in October to get educated,
connected and upli�ed. Our economies and communities need us more than ever, and I know we can
rise to the occasion together.
Stay healthy and keep strong,
LISA RILEY
2021 IBBA Chair, CBI, CM&AP, CBBI | Delta Business Advisors | lisa@deltabusinessadvisors.com
LETTER FROM THE CHAIR
New Relief Bill Helps Businesses
As a trusted and preferred lender for the IBBA Organization, we like to keep
our referral partners informed with what is happening in the marketplace.
On December 27, 2020, a new relief bill was passed into law intended to provide
the much-needed economic support to help businesses. The bill, known as the
“Consolidated Appropriations Act, 2021”, allocated funding to the Small Business
Administration, which covers several relief programs. One of which is the Economic Aid to Hard-Hit
Small Businesses, Non-profits and Venues Act. This Act provides $325 billion for additional assistance
to those struggling to recover from the impact of the COVID 19 Pandemic. This critical assistance
provides small business owners with the capital they need to survive and includes critical resources
for the smallest businesses. Our President of CreditBench, Tom Zernick spoke to congress to help
enforce the need for this act to be passed, calling for a “business vaccine” to aid our small businesses.
In terms of payment assistance, SBA loans approved a�er January 31, 2021 to September 30, 2021 will
receive 3 months (recently reduced from 6) of loan payments made by the SBA (capped at $9,000
per month). The amount will increase for SBA Express loans from $350,000 to $1,000,000 has been
extended to September 30, 2021, it then changes to $500,000 on a permanent basis.
The SBA Guaranty Fee charged to the borrower is also waived on all approved 7 (a) loans before
September 30, 2012. This is a huge savings! This waiver is for both the 7(a) and 504 loan programs.
Now is a great time to become part of our Referral Network. Earn 2% on each referred deal.
CLICK HERE
I hope this overview has been useful and provides value. I look forward to our continued partnership
with this great organization.
Jack Postregna, VP, SBA Lending Officer | Credit Bench powered by First Home Bank
JACK POSTREGNA
VP, SBA Lending Officer | Credit Bench powered by First Home Bank | jack.postregna@firsthomebank.com
SPRING 2021
Brian Tracy says that one of the seven key questions every sales conversation must
answer is “Who says so? Other than you?” If you use the Market Pulse, you can
say that IBBA, M&A Source, and 363 of your fellow business brokers “said so” in the
most recent Market Pulse Survey.
Do you know of Brian Tracy? He is a high school dropout become business mogul who has wri�en
more than 70 books including Eat That Frog. He is president of three multi-million-dollar companies
that train people in business success strategies as well as sales and leadership skills. He is a 75-year-
old Canadian American go-ge�er with no plans for retirement.
Brian Tracy also says, “Those people who develop the ability to continuously acquire new and be�er
forms of knowledge that they can apply to their work and to their lives will be the movers and
shakers in our society for the indefinite future.” Through our participation in the IBBA and M&A
Source we have an opportunity to be part of the continuous development of business brokerage.
And through utilization and application of the knowledge gained, we can be among the successful
thought leaders in the business brokerage industry today.
Who Says So?
Backing Up Answers with Market Pulse
Lee Sheaffer, CBI | BizReady, Inc.
SEE REPORT
Get the insights you need into Main Street and Lower Middle Market
transactions with the Market Pulse Report!
One of the easiest ways to participate is The Market Pulse Survey. Quoting from the Q4 2020
Executive Summary “The quarterly IBBA and M&A Source Market Pulse Survey was created to gain
an accurate understanding of the market conditions for businesses being sold in Main Street (values
$0-$2MM) and the lower middle market (values $2MM -$50MM). The national survey {is} conducted
with the intent of providing a valuable resource to business owners and their advisors.
Participation is simple. You respond to survey questions and provide information on your closed
deals. Here is a link to The Sales Tracker Download to show you exactly what is reported. Even
if you have no closed deals for the quarter, responding to the survey will get you a copy of the full
report.
An Executive Summary is publicly available; however, the full report is provided only to survey
respondents. Respondents also receive a Comparison Report (current quarter versus same quarter
in prior year), a Press Release template, and an opportunity to win a quote in a future Market Pulse
report or educational class.
There are many ways to utilize and apply information in The Market Pulse. Here are some uses you
might consider:
SELLER EDUCATION
Answers to many basic questions from Sellers are fundamental to the Market Pulse. Pairing
common seller questions with answers from Market Pulse graphs provides pictures that are “worth
a thousand words. It also checks of the Brian Tracy’s key question of “Who says so? Other than you?”
Take the very simple example, of “How long will it take to sell my business?”
BROWSE SUPPLIERS
Start Connecting with Opportunity with the IBBA Supplier Directory!
Browse our online database of products and services to take your career to the next level.
Supplier Directory
The Market Pulse answers by deal size both the median number of months from Engagement to close
and from LOI/Offer to Close. Wouldn’t it be great to have these graphs in your presentation bag?
Answers to many other common Seller questions can be supported with Graphs in the Market Pulse.
For example, you can use graphs to show:
• Median multiples for closed deals
• Financing structures
• Compare selling price to asking price
• Discuss timing – Seller’s versus Buyer’s Market
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12
10
<500k5
00k 1m
1m - 2m2
m - 5m
5m - 50m
77
8.51
11
12
10
<500k5
00k 1m
1m - 2m2
m - 5m
5m - 50m
23
34
Median Number of Months
from Listing/Engagement
to Close
Median Number of Months
from LOI/Offer to Close
SPRING 2021