IBBA Insights Summer 2023

Summer 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:

+ Selling Your Business

+ Understanding the New SBA Rules

+ Ge�ing Inside the Mind of a Seller

+ Keeping Egos from Derailing a Sale

+ Legislative Updates

and More!

Se�ing Our

Sights High

By Kyle Griffith, 2023 IBBA Chair

SUMMER 2023

The best insights

on buying and selling

small businesses

In this Issue

6

10

16

20

24

LETTER FROM THE CHAIR

SELLING YOUR BUSINESS THIS YEAR: 5 KEY PREPARATION STEPS

THE NEW SBA RULES AND THEIR EFFECTS ON YOUR TRANSACTIONS!

INSIDE THE MIND OF A SMALL BUSINESS SELLER

DON’T LET YOUR CLIENT’S EGO (OR YOURS) GET IN THE WAY OF THE SALE!

LEGISLATIVE UPDATE

SUMMER 2023

As we step into the second half of 2023, it’s an ideal moment to reflect on our

journey, celebrate our achievements, and set our sights on future goals.

We take pride in witnessing the remarkable growth of our IBBA family, now a

robust community of over 2,700 members. This expansion is not merely about

numbers, but signals increased diversity and inclusivity within our association.

Our association has evolved into a dynamic blend of wisdom, fresh viewpoints, and diverse

gender representation. The encouraging increase in female business brokers and the influx

of young professionals have broadened our membership base and enriched our collective

perspective. This increased diversity, in which we take immense pride, enhances innovation,

promotes a forward-thinking environment, and drives growth within our organization.

The year 2023 marks a significant milestone for our industry - the passage of the Brokerage

Simplification Act. This legislation removes specific regulatory requirements for M&A brokers,

making business transactions more seamless and efficient. It’s a testament to our advocacy

efforts and dedication to promoting smooth business operations.

The annual IBBA conference in Orlando, Florida, was monumental, marking our largest assembly

of top business brokers worldwide. This platform facilitated a dynamic exchange of ideas, best

practices, and strategies through various workshops, masterminds, and courses. The successful

amalgamation of knowledge sharing, networking, and collaborative learning underscored our

unwavering commitment to providing top-tier educational opportunities and se�ing industry

benchmarks.

At the conference, we celebrated our members’ achievements, recognizing a record number of

award recipients from over 1,800 deal submissions. This notable increase in awards mirrors

our members’ success and reflects the growing recognition of business brokers’ pivotal role in

successful business transfers. Every award symbolizes hard work, persistence, and professional

excellence, which we should all take immense pride in.

Se�ing Our Sights High

KYLE GRIFFITH | CBI, CM&AP | 2023 IBBA Chair

Our constant endeavor to raise awareness about the business brokerage industry continues to

bear fruit. We are a�racting new brokers and boosting our profession’s visibility. Our strategic

vision aims to cultivate a culture that encourages growth and gives our members essential tools,

resources, and support to succeed.

Looking ahead to the remainder of 2023, our resolve is unshaken, and our optimism is high.

We remain focused on strengthening our global footprint, offering unparalleled value to our

members, and advocating for business brokers.

Our journey so far has been shaped by your dedication, commitment, and faith in the IBBA. Your

success is our success, and together, we aim to build an even more robust, valuable, and quality-

focused association.

Thank you for your unwavering commitment to the IBBA. Here’s to forging an even brighter

future together!

Best regards,

KYLE GRIFFITH | CBI, CM&AP | 2023 IBBA Chair

kyle@thenybbgroup.com

LETTER FROM THE CHAIR

The IBBA: 2,700+ Members Strong,

and Growing!

SUMMER 2023

Selling Your Business This Year:

5 Key Preparation Steps

DAVE DECAMELLA

CBI, Transworld Business Advisors

A new year brings with it a slew of changes and new beginnings. With this you might be

making some major business decisions and reevaluating your career goals — whether

getting ready to retire, considering another job, or merely wanting to sell for personal

reasons.

Surprisingly, January can often provide one of the best opportunities to sell, as ambitious

entrepreneurs with big New Year’s goals kick off their company search. As with any

successful commercial sale, meticulous planning and certain preparations are key — from

getting your books in order to getting your space (literally) in order — before you can

even start looking for a potential buyer. Think about the following tips to make sure your

business is in tip-top shape when the time comes to truly sell:

TAKE STOCK OF YOUR GOALS. Before you get too ahead of yourself, first ask a few

simple questions: Are you looking to hand off the business to a devoted employee or close

family member? Would you rather sell the business in full at closing and leave with a

wad of cash? Does maintaining the company brand matter much to you? Would you be

content to keep working for a couple of years as a company consultant? Before getting too

wrapped up in the sale, first consider your own needs and desires.

GET YOUR FINANCIALS IN ORDER. Some buyers will be looking for at least two or

three years’ worth of detailed books, and the more organized your financials are, the

better off you’ll be in the long run. Compile all of your tax returns, financial statements,

employment agreements, supplier contracts, projections, etc. Why? Because poorly kept

books are likely to ruin the business sale before it even happens. Begin gathering this

information as soon as possible to leave ample time to make adjustments.

DETERMINE THE WORTH OF YOUR BUSINESS. Enter a third-party business valuation,

which can be crucial in estimating your company’s value. Just like you may take your car

to the mechanic for a tune-up, business brokers are experts when it comes to the buying

and selling of businesses. A qualified business broker will review all aspects of your

business (as well as the competition) in order to make a detailed and accurate assessment

SUMMER 2023

— and then they can assist in making that successful

sale happen straight through closing.

TIDY UP THE SPACE. You will want your company

to make a great first impression, appearing clean and

presentable when meeting with potential buyers.

This includes (but is not limited to) making any minor

or major repairs, purchasing new furniture, and/or

applying a coat of paint to any physical stores. Also, be

sure to evaluate your inventory needs and clean out any

excess baggage. This also serves as a great opportunity

to make website updates and get other digital assets

organized.

GET YOUR TEAM TOGETHER. Keep up with sales

preparations and avoid any unwanted surprises

by getting your team of trusted advisors together

before listing the business. This could include your

bookkeeper or accountant, your CPA, any legal team

members, a business broker, and any other key players

who should be involved in the big sell. Collaborating

with a tight-knit team of specialists can better prepare

you for listing and selling your company.

DAVE DECAMELLA

CBI

Transworld Business Advisors

dave@tworld.com

SUMMER 2023

The New SBA Rules and Their Effects

on Your Transactions!

These ma�er to you on so many levels, please read.

STEVE MARIANI

Owner, Diamond Financial Services Advisors

BUILDING SUCCESS THROUGH THE SHARING OF INFORMATION

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