IBBA Insights Spring 2023

Spring 2023

The insights and opinions expressed herein are those of the authors

and do not represent professional counsel nor an endorsement by the IBBA.

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:

+ The Inaugural Master’s Program

+ Preparing for Buyer-Seller Meetings

+ SBA Financing

+ and More!

Defining

Moments

by Kyle Grifth, 2023 IBBA chair

SPRING 2023

The best insights on buying

and selling small businesses

In this Issue

12

20

26

LETTER FROM THE CHAIR

INAUGURAL MASTER’S EDUCATION PROGRAM

PREPARING FOR THE FIRST BUYER-SELLER MEETING

FINANCING THROUGH THE SBA

LEGISLATIVE UPDATE

SPRING 2023

Defining Moments

Kyle Griffith, CBI, CM&AP

Joining the IBBA in 2016 was a defining moment in my business brokerage career.

I wanted to broaden my knowledge of business sales, network and learn from

industry leaders. My participation in the IBBA has been invaluable, and I was

honored to be elected to the Board in 2019. With now over 13 years’ experience, I

credit my success to the IBBA and aspire to continue seeing this organization keep creating defining

moments in the lives of others.

I think, by definition, a defining moment o�en entails doing or achieving something that hasn’t

been done before. With over 2,800 members the IBBA is the largest and strongest we’ve ever been

and we’re a�racting a more diverse pool of people to our profession and organization; it’s a defining

moment. Passage of the Brokerage Simplification Act is a significant, defining moment for us all. If

we look back just a few short years at the progress of our education programs, awards, benefits and

Conferences, each has experienced a defining moment of new heights that has increased value for

membership. The question then is, where do we go from here?

Just as with our own professional development, the IBBA must strive to achieve new defining

moments. Here are a few on the radar that I’m most excited about…

DEFINING MOMENT: RAISING AWARENESS OF THE BUSINESS BROKERAGE PROFESSION.

As insights from our business owner research studies come in, we will be be�er equipped to play an

even stronger role in making sure business owners understand that working with a Business Broker

is essential. Increasing the knowledge and utilization of professional Business Brokers will be a

defining moment that is central to our primary purpose.

DEFINING MOMENT: ATTRACTING THE NEXT GENERATION. Starting years ago we’ve been

intentional about be�er educating people about the industry and in being an organization that

supports the advancement of women in the profession. Just look around our Conferences or Zoom

meetings and you can see change happening; we have more diversity than ever before, and this

benefits us ALL. We’re continuing to press into these areas and explore new ways to help more

people flourish. Breaking the mold of a ‘good ole boys’ profession and se�ing up the next generation

for success is a defining moment to certainly be proud of.

DEFINING MOMENT: THE LARGEST BUSINESS BROKERAGE CONFERENCE IN HISTORY. It’s

not an exaggeration to predict that this year’s Conference in Orlando will be the largest we’ve ever

seen. As an a�endee, that means you have even more insights and best practices to tap into – any

one of which can result in a defining moment for your personal success. Many of my own significant

moments can be correlated back to a course, conversation or connection that happened at an IBBA

Conference.

The other thing you begin to realize about defining moments is that they do not come from working

in isolation and their impact is not isolated either. By surrounding ourselves with like-minded

individuals, investing in our skills and supporting each other collectively, we can positively impact

the industry and achieve personal and professional growth. And as you then take your skills to the

marketplace and help business owners transition, YOU are creating defining moments in the lives of

so many others who are impacted by that business. I can tell you that seeing that happen is the most

fulfilling aspect of what we do.

LETTER FROM THE CHAIR

SPRING 2023

If you can’t tell, I love what we do as Business Brokers and I am so honored to serve as Chair of

the IBBA this year. I want to express my gratitude to the previous Chair, Randy Bring, for his

exceptional leadership and unwavering dedication to the organization. The IBBA made remarkable

progress and achieved great success under his leadership, working in tandem with Board members,

volunteers and staff. It’s the dedication of these people that has cemented IBBA as the world’s

premier, professional association for Business Brokers, and it’s that continued dedication by the

people of our organization that will drive us all to our next defining moments. I look forward to

working with every one of you to continue the IBBA’s tradition of excellence and growth.

See you in Orlando!

Best regards,

KYLE GRIFFITH

CBI, CM&AP

Managing Partner

The NYBB Group

The IBBA: 2,800+ Members

Strong, and Growing!

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SPRING 2023

Inaugural Master’s

Education Program

Barry J. Berkowitz

PhD, CBI, M&AMI

In recent past years, the IBBA heard from many of our tenured Certified Business

Intermediaries® (CBI) who practice in the main street and general marketplace. They voiced

their desire for advanced education to have even more expertise in what they do. It was

the vision of IBBA Executive Director, Kylene Golubski, to develop a Master’s Education

Program to satisfy those needs. Kylene said, ”One of IBBA’s principal focuses is to deliver

education on the knowledge, skills, and techniques permitting Business Brokers to operate

at the highest level of competency to best serve the needs of their clients.”

During 2022, the effort began to make the Master’s Education Program a reality. The

Program is focused on the CBI member who wants to expand and extend his/her knowledge

base within the main street and general marketplace. Some IBBA members want to move

onto bigger deal sizes in the the lower middle market and learn how to do that by becoming

members of the M&A Source®, IBBA’s sister organization. However, a significant number

of tenured CBI’s are more interested in continuing to work in the main street and general

marketplace to increase their depth and breadth of knowledge in that space. Unlike the

entry and intermediate level education where the “nuts and bolts” of business brokerage

are taught, this Master’s Program was designed to teach a higher level of knowledge and

skill sets. Steven Beal, IBBA’s Education Committee Chair, comments that, “… education at

the IBBA must be innovative and stay at the leading edge of content and technology. This

Program certainly does that.”

The Master’s Education Program content was developed and is being delivered by some of

IBBA’s best instructors. The Program focuses on the subtle, and often surprising, issues

that occur in actual deals but can usually be avoided only through expertise and years of

experience. Many times, these difficult issues can end a deal; an outcome we can perhaps

avoid. It is the intent of this Program to focus on preparedness and the actions that the

Business Broker can take to anticipate and prevent such issues from arising, and to know

how to effectively handle them when they do arise.

SPRING 2023

Rather than a lecturing environment, our students are learning through a colloquium type

setting that is more reminiscent of the learning process in graduate school studies. Thus,

our instructors have been renamed as Professors for this Program. Each of the 10 Professors

spends a month on a different aspect of the business brokerage process. They meet with the

students live, online two times per month with pre-work, exercises and discussions with the

students participating in the colloquium setting. Topics include issues and experiences, and

are discussed by all sharing their ideas. It provides an opportunity for the CBI to learn of the

mistakes and accomplishments of others, saving many years of building those experiences

themselves. The ten Professors for this inaugural Program include Cress V. Diglio, Rich

Mowrey, Louis Pereira. Glen Cooper, Jim Afinowich, Andy Cagnetta, Tawnya Gilreath, Lou

Vescio, Monty Walker, and Pino Bacinello. The colloquium style of learning is delivered live,

online using IBBA’s learning platform at www.ibbauniversity.com.

The result is that the entire group gains the knowledge and virtual experiences of others.

Cress Diglio, with many years of experience, tell us that he has learned many new ideas from

the students. Lou Pereira, who is teaching the valuation session, spent zero time teaching

the math; every student already knew the valuation process. Instead, Professor Pereira was

more focused on the thought process involved in valuing a business. He posed interesting

scenarios for the students to discuss and the results, coming from various experiences, were

very helpful to all.

We have to date completed two months of the 10-month Program. The sessions were designed

to follow the various stages of the business brokerage process. They include:

Prospecting for Sellers

Pre-Due Diligence with Sellers

Analyzing and Valuing Businesses

Packaging and Marketing Businesses

Identifying and working with Qualified Buyers

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