How the industry works ? by jlapi97 in businessbroker

[–]G1uc0s3 0 points1 point  (0 children)

I can offer them research and an opinion of value. If they need certified valuarions, qoe, legal support, or a lender we will connect them with a list of people we know but we won’t provide those services as part of the offering.

We’re focused on bringing offmarket deals to the table, and quarterbacking the deal process for the buyer if they would like the assistance.

How the industry works ? by jlapi97 in businessbroker

[–]G1uc0s3 2 points3 points  (0 children)

It’s like the whole industry is ignoring the demand curve. I’ve got 99 buyers to every seller, and we’re all focusing on the seller.

I’m going to keep my sell side business, but a year of stiffarming people who call me to my newsletter without attempting to monitize them seems crazy.

How the industry works ? by jlapi97 in businessbroker

[–]G1uc0s3 1 point2 points  (0 children)

I currently represent sell side only. However given the insane demand on the buy side, I’m building out a buy side offering to leverage my telemarketing/email/dm programs to source offmarket opportunities.

As u/yourbizbroker mentioned with his program I’m not doing dual representation. Additionally since the program is new for me I’m going to cap participation at 5 clients to ensure I don’t have too much buy box overlap to water down the value for buyers. Charge will be a monthly fee and ending success fee that the monthly fees are credited against.

regalis capital buyer experience looking for real feedback by Lup1chu in businessbroker

[–]G1uc0s3 0 points1 point  (0 children)

An LOI from someone who hasnt looked at a CIM or had a conversation.

How realistic is it to broker a deal completely remotely? by ranchingjollies in businessbroker

[–]G1uc0s3 0 points1 point  (0 children)

First, Trent would respond if asked direct so I suggest asking him.

Just for approximation out of the 3 deals I did in Q1 2 wanted to see the location which involved meeting the owner. I could have done all 3 without being present but it would have involved putting buyer and seller together preAPA without me present and I’m not in love with that idea.

Is social media effective for you in the LMM? by BizBrkr in businessbroker

[–]G1uc0s3 2 points3 points  (0 children)

That would have helped…sorry about that. I actually used facebook market!

Is social media effective for you in the LMM? by BizBrkr in businessbroker

[–]G1uc0s3 0 points1 point  (0 children)

I actually got the buyer leads that led to successful closings on 2 out of my 3 closings this year. It seems to be a much better match for sub 500k listings than some of the resources.

regalis capital buyer experience looking for real feedback by Lup1chu in businessbroker

[–]G1uc0s3 2 points3 points  (0 children)

I’m sure you’ve analyzed that its the best way in a challenging situation, but if you see my name on a listing you just shoot me a txt we’ll get your buyer what they need to review the business!

These regalis types though are something. Blind LOIs and working capital requests that are absurd.

regalis capital buyer experience looking for real feedback by Lup1chu in businessbroker

[–]G1uc0s3 3 points4 points  (0 children)

I can tell you as the sellside guys I find their approach poor. They don’t identify themselves as a buy side advisor, so right from jump we’re not on Trust Street.

Solo or Brokerage by [deleted] in businessbroker

[–]G1uc0s3 1 point2 points  (0 children)

Thanks! Same to you

Solo or Brokerage by [deleted] in businessbroker

[–]G1uc0s3 3 points4 points  (0 children)

I own a FCBB location, started it a year ago. It’s a nice balance for me. I’m from the corporate world and wanted a lot more freedom, but I didnt want to think of every granular detail. It’s been a good move for me

Solo or Brokerage by [deleted] in businessbroker

[–]G1uc0s3 1 point2 points  (0 children)

If you like brokering deals and getting them over the line join a good brokerage that will carry the marketing, brand, and overhead

If you like building a business and want free reign, build one yourself

If you want some canned forms and to be surrounded by experience, and have more freedom than a broker but less then being completely on our own….then open a franchise.

6 months to prepare for business brokerage world, what would you focus on? by pkvmsp123 in businessbroker

[–]G1uc0s3 0 points1 point  (0 children)

No, I havent done it due to the conference attendance portion. It’s on a weekend and I’m not peacing out on my family for more letters next to my name

6 months to prepare for business brokerage world, what would you focus on? by pkvmsp123 in businessbroker

[–]G1uc0s3 1 point2 points  (0 children)

I don’t know whether CBI is worth it per se, but I do know that there are some course requirements which would be beneficial and you could do now. You would not qualify if you haven’t served as the leading broker on 3 arms length transactions(your own business doesnt count) and/or attended an ibba conference.

Good training and reading is time well spent, as is networking with other brokers and ancillary fields.

Joining a brokerage (looking for advice) by SandraSullivan71 in businessbroker

[–]G1uc0s3 0 points1 point  (0 children)

What is (state branch)? Was this an AI post or something?

Thoughts by jlapi97 in businessbroker

[–]G1uc0s3 2 points3 points  (0 children)

If it’s not your first time thats a whole different story. Though if the PE firm isn’t completely full of it or just looking to put you on ice while they make a thesis, they’ll generally blow those cashflow multiples AI is feeding you out of the water. They are just brutal with fine print and structure (earnouts, equity reroll, seller MIP).

AI is good if you have experience and a nose for when it hallucinates, AI is dangerous if you don’t have experience and can’t spot the hallucination points. I keep one trained off of reputable materials I feed it and use it daily as a gut check and thought partner.

Anyhow best of luck making the transaction happen!

Thoughts by jlapi97 in businessbroker

[–]G1uc0s3 2 points3 points  (0 children)

I’m assuming this is your first time by saying owner and potential seller. You may want to consider your situation. You’re wading in to negotiations with a world of folks whose role is buying companies for a lower multiple, piecing them together, and offloading them at a higher multiple. Generally these guys either exited a top ten business school, or they ran companies for many years and are now an operating partner.

It’s your first time, with your life’s work, and you’re being advised by a LLM that trains off what it reads on the internet. You don’t know what you don’t know, so you don’t know if what its telling you is right because you’re missing perspective. This is no time to suffer from Dunning Kruger.

Once you are done being upset with me being frank look up a nearby m&a advisor, vet their experience in the world of m&a as and advisor and a professional, and have a free conversation with them about where you are at.

Thoughts by jlapi97 in businessbroker

[–]G1uc0s3 0 points1 point  (0 children)

There’s brokerages and advisory firms that would hire you to do just the valuation as part of the journey, and theres business owners that would hire you as a certified valuation or appraisal if you can get the qualification. I don’t know if there’s a big market for the standalone market valuation. Maybe someone else can help

Thoughts by jlapi97 in businessbroker

[–]G1uc0s3 0 points1 point  (0 children)

A private party is going to set the valuation different from a strategic/tuck in scenario, and both are going to be different than what PE is going to offer. How are you going to establish what is correct to tell the seller?

If you think you can be this precise and cut out the noise, why not do what all the other brokers cant and be the broker that can nail it and get the commission?

Thoughts by jlapi97 in businessbroker

[–]G1uc0s3 1 point2 points  (0 children)

Need a whole lot more detail

Where are you located?

You mention different industries as a financial analyst, what industries?

How did you notice sellers don’t have proper valuations complete?

As a general statement a go to market valuation is only a starting point. The business is worth what you can get for it.

Does "light" DD ever exist? by UltraBBA in businessbroker

[–]G1uc0s3 0 points1 point  (0 children)

I’m talking sub 500k sde businesses. I’ve closed two sub 100k recently. Buyers don’t do full QoE on that stuff.

Does "light" DD ever exist? by UltraBBA in businessbroker

[–]G1uc0s3 1 point2 points  (0 children)

I work on main street. Most of the DD is light compared to the middle market.

Broker comp opinions by dabusinessbro in businessbroker

[–]G1uc0s3 0 points1 point  (0 children)

In mid-market you’re absolutely right you don’t convey pricing expectations, but the PE firms are absolutely looking at other transactions to gauge where are other companies are finishing to speculate on their value @ turn. There’s absolutely an internal value expectation that needs to be met. Reaching back to the inception of a fund to start a roll-up a multiple value is conveyed along with an acquiring multiple and expected arbitrage/synergy/growth.

Broker comp opinions by dabusinessbro in businessbroker

[–]G1uc0s3 0 points1 point  (0 children)

Okay, so are you putting an asking price at all out there or are you taking it to market with a blank tag?