Spring 2022
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:
+ Bundling Businesses and Their Real Estate
+ Working with High Net Buyers
+ The Future of Business Brokerage
+ Legislative Updates
Elevating
Our Game
by Randy Bring, 2022 IBBA Chair
SPRING 2022
The best insights on buying
and selling small businesses
In this Issue
12
18
26
31
36
LETTER FROM THE CHAIR
SHOULD THE BUSINESS AND REAL ESTATE BE SOLD TOGETHER
WORKING WITH HIGH NET BUYERS AND THEIR CONCERNS
BUSINESS LESSONS LEARNED FROM 2020-2021
THE FUTURE OF BUSINESS BROKERAGE
PRESERVING LEGACIES AND CREATING FUTURES
LEGISLATIVE UPDATE
SPRING 2022
Elevating Our Game
Randy Bring, CBI, M&AMI, CM&AP
Dear Members and Friends of the IBBA,
This being my first le�er as the Chair of the IBBA, I want to express my humble
honor in being elected to this position and also tell you a li�le about myself.
Based in Boca Raton, FL, I’ve proudly been a Business Broker for 21 years and an IBBA Member for
20 of those years. I serve clients from main street to lower middle market – and have an absolute
passion for working with Sellers and Buyers and making their dreams a reality. My hope is that both
my experience and love for selling businesses will guide me in representing the voice of our members
this coming year.
A big thank you goes out to our 2021 Chair, Lisa Riley, whose leadership during a rather challenging
year was exemplary and who continues to work tirelessly on behalf of the IBBA. I also want to
acknowledge our Board Members, our many commi�ee volunteers, and our Executive Director,
Kylene Golubski and her talented staff, all of whom contribute their time and energy towards
making the IBBA the premier professional association for Business Brokers worldwide.
Our profession faces both amazing opportunities and big challenges in the year ahead. While there
is an absolute abundance of people who want to sell and buy businesses at the same time deals are
certainly ge�ing more complex. Our primary challenge therefore is not creating inherent demand
– it’s already there. Our collective challenge is making the Business Broker the go-to trusted advisor
when transferring ownership of a business.
Have you ever met with a Buyer or a Seller who commented they have never heard of a “Business
Broker” before? Or, have you worked with another Business Broker whose professional game was
(and I’m being nice), lacking? If you haven’t, I promise, you will experience both scenarios. It’s vital
that we raise the general awareness and reputation of Business Brokers and the best place to start is
by making a personal commitment to elevate your own game. If every practicing Business Broker
was well trained, abided by best practices as reflected in the IBBA Code of Ethics, commi�ed to
continuous self-development, and tapped into the support and benefits of the IBBA, our industry’s
reputation would gleam.
The truth is, no one ever elevates their game - whether in life, sports, or business - in a vacuum. By
operating alone, you have limited impact on your outcomes (and your incomes). But, by surrounding
yourself with good company and investing in your career, you will amplify both your personal
and professional success while advancing our profession. That’s why even though I’ve been selling
business for a long time, I continue to take advantage of all the IBBA has to offer me while keeping
myself in the good company of my IBBA colleagues who constantly drive me to elevate my own
game. Our members are some of the best Business Brokers in the world and, professionally speaking,
these are the people I want to know and learn from. And believe me, a�er 21 years, I learn something
new every day.
For any Business Broker who is not currently an IBBA Member, it really does beg the question: Why?
Why would you not belong to a supportive group dedicated to advancing your excellence in our
industry? Why would you not partake of education that builds your skills and earning potential?
And why would you not take advantage of benefits that literally save you thousands of dollars?
It’s clear that elevating your game really precedes elevating your success, that is, action must precede
results. You owe it to yourself- and you owe it to your clients - to be the best Business Broker you can.
Start (or continue) that commitment by first being a member of the IBBA, and second by a�ending
the IBBA Conference - a two-day event whose entire focus is to help you Elevate Your Success as a
Business Broker. There’s no other event in the world that brings such a large, diverse and talented
group together. Going every year is part of how I keep elevating my game a�er all this time.
LETTER FROM THE CHAIR
SPRING 2022
And there is nothing like the feeling of coming back to your home office a�er a conference
knowing you have learned something that you can put to use right away to help elevate your game.
I hope to see you there - for yourself, for your clients, and for our profession.
Best regards,
RANDY BRING
CBI, M&AMI, CM&AP
IBBA Chair of the Board, 2022
Transworld Business Advisors
randy@tworld.com
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SPRING 2022
Should the Business and
Real Estate be sold together?
Stacy Cadieux
CBI, Business Transition Consultant
with Simmons & Associates Southcentral
There are many things to consider when selling your company, including whether to sell
the real estate with the business. The business and the real estate are two separate assets;
therefore, they should be considered separately. Today’s market offers several options for a
seller to maximize financial gain on their real estate. Before you sell your business, consider
the following.
RENTAL INCOME
The best reason to lease your real estate is the earning potential. We generally see business
properties have an annual return between 8-10% of the real estate value, depending on
the area. In markets where real estate values are climbing, rental income with a sale of
the property later is a great option. However, commercial properties can be designated as
a special-use buildings, meaning that its highest value is as the current business. As an
investment, special-use properties such as this can be a bit risky as suitability is limited
to few business types. Selling the business but keeping the real estate puts you at risk in
a situation where your tenant chooses to move their business. You could be left with an
empty building that will require extensive remodeling to repurpose, as leasing to another
like-kind business is usually not possible in these situations because the previous tenant
has opened a new facility nearby. Be sure to consider all options before jumping into a long-
term lease.
1031 EXCHANGE: TAX DEFERRAL STRATEGY
You should decide if your business would be as good an investment as would be a sister
piece of property with a broader use. Moreover, the gain on the real estate sale is taxed as
a capital gain. Unless there is a change in our tax structure, the capital gain tax will always
be with us, and maybe at a higher rate. So why not take advantage of a 1031 Exchange? This
allows you to sell a piece of property, reinvest the proceeds into a new property and defer
the income tax from the sale. Properly structured, a 1031 Exchange becomes a valuable
tax savings and wealth preservation tool. Be sure to seek the guidance of your CPA and a
Qualified 1031 Intermediary.
SPRING 2022
SELL THE REAL ESTATE WITH THE BUSINESS
Be prepared to consider the buyers’ preferences. Most buyers who are interested in
purchasing the business would like to buy the real estate. It is not uncommon to have a
buyer backout because the real estate is not part of the purchase. Probably the greatest
misconception is that the buyer “can’t afford to buy it all now.” While this used to be accurate,
it is not true today. There are many commercial lenders with funds readily available for
qualified buyers to purchase the real estate along with the business. Moreover, with the
current interest rates and favorable terms available today, the mortgage payment on the real
estate is typically about the same as a rent payment would be.
CONSIDERING A SALE TO A THIRD-PARTY BUYER
One possible outcome may be that you sell the property to a third-party who then leases
the property back to the buyer. The separate transaction can be seamless to the seller. This
scenario could be a win-win for a buyer who does not want the real estate obligation and you
still get the liquidity.
Ultimately the decision to sell or hold your real estate depends on many factors. Honestly
evaluate whether you want ongoing involvement as a property manager after the sale and the
current real estate market in your area. Most importantly, assess your finances and long-term
objectives for retirement.
STACY CADIEUX
CBI
Business Transition Consultant with Simmons & Associates Southcentral.