Let's Chat with Jim Parker, Business Broker

Let's Chat is a show about Business Brokerage hosted by Jim Parker, Business Broker. Join us as he interviews the best business professionals in the business brokerage industry. Guests include fellow brokers - sales agents and buyers agents - as well as CPA's, Attorneys, people who have sold their businesses and those who have bought businsses. We dig deep and look at what it really takes to buy and sell businesses. If you are a business owner - from Main Street to Wall Street to the Family Farm - you should listen and learn more about what it means to have a business worth selling. There's no time like today to spend time with experts and make yourself and your business better. Join Jim Parker and his guests on Let's Chat with Jim Parker, Business Broker.

SBA Lending 101 06/19/2024

SBA Lending 101 SBA LENDING 101 "Let's Chat with Jim Parker Business Broker" is proudly affiliated with the BBP Podcast Network EPISODE: 12 RELEASE DATE: June 19, 2024 YOUTUBE CHANNEL: WEBSITE: In this episode of "Let's Chat," join host Jim Parker as he converses with SBA lender Tammy Roberts (née Teece) from Live Oak Bank. They delve into the fundamentals of SBA lending, highlighting the benefits, requirements, and processes involved. With nearly 25 years of experience in business brokerage, Jim stresses the advantages of pre-qualifying businesses for SBA loans and the steps needed to ensure smooth transactions. Tammy shares invaluable insights on pre-qualifying buyers, navigating loan underwriting, managing closing timelines, and more. This informative episode is a must-watch for business brokers, prospective buyers, and sellers looking to better understand SBA loans and their impact on small business growth. Don't miss out on learning crucial tips that can help you succeed in your business transactions. To connect with Tammy: 239.272.8145 Join the discussion! Like, share, leave a comment, and for more from "Let's Chat," subscribe on YouTube 00:00 Introduction and Guest Welcome 00:48 Meet Tammy Tease: SBA Lending Expert 02:47 Understanding SBA Lending Basics 03:10 Advantages of SBA Loans 08:36 Pre-Qualifying a Business for SBA Loans 17:08 Pre-Qualifying Buyers for SBA Loans 25:22 The SBA Loan Process: From Offer to Approval 28:19 Understanding Home Equity Requirements 28:56 Importance of Life Insurance in Deals 3 0:06 Personal Guarantees and Spousal Involvement 31:49 Credit Scores and Background Checks 34:33 SBA Loan Application Process 40:12 Challenges and Solutions in Closing Deals 44:40 Virtual Closings and Final Tips 47:49 Conclusion and Call to Action TOPIC KEYWORDS: Jim Parker, business broker, SBA Loans, SBA Lending, SBA, small business, Tammy Roberts, Live Oak /episode/index/show/2650f937-7fea-4295-89af-a90a01cfe2c2/id/31809177

The Future of Business Brokerage 06/05/2024

The Future of Business Brokerage THE FUTURE OF BUSINESS BROKERAGE "Let's Chat with Jim Parker Business Broker" is proudly affiliated with the BBP Podcast Network EPISODE: 11 RELEASE DATE: June 5, 2024 YOUTUBE CHANNEL: WEBSITE: Join host Jim Parker on "Let's Chat with Jim Parker" for an enlightening interview with Lou Vescio, a leading business broker and former chairman of the International Business Brokers Association. This episode explores the evolution of business brokerage, spotlighting the benefits of team-based approaches and specialization in fields like insurance. Lou shares his journey from starting his practice to running a successful brokerage firm, emphasizing the importance of education, camaraderie, and efficient processes. Discover how technology, particularly Zoom, has revolutionized the industry, making it easier to build credibility and close deals across distances. Lou also highlights the significance of continuous learning, mentorship, and maintaining a quality life balance. Packed with invaluable insights, this conversation is a must-watch for anyone looking to enhance their business brokerage practices and industry knowledge. To connect with Lou: Join the discussion! Like and share, and for more from "Let's Chat," subscribe on YouTube 00:00 Introduction and Guest Welcome 01:13 Lou Vescio's Career Journey 02:10 Team Concept in Business Brokerage 03:28 Specialization in Insurance Brokerages 04:27 Valuation Services and SBA Lenders 05:47 Building a Successful Team 07:28 Importance of Communication 12:21 Training and Mentorship 14:08 The Role of Motivation 31:07 Working on Your Business, Not In It 36:39 Maintaining Communication Between Buyer and Seller 37:28 The Importance of Controlled Calls 39:24 Challenges and Solutions in Business Transactions 42:41 The Art of Saying No 46:55 Improving Business Broker Practices 58:24 Specializing in Industry Verticals 01:07:54 Advice for New Business Brokers 01:11:36 Closing Thoughts and Farewell BLOG: "Let's Chat:" An In-Depth Discussion with Lou Vescio Welcome fellow business brokers! In this edition of "Let's Chat with Jim Parker," we delve into an insightful conversation with Lou Vescio, a renowned business broker in the United States. Lou is the former chairman of the International Business Brokers Association (IBBA) and has an impressive resume that underscores his extensive contributions to our industry. Lou shares his enthralling journey, insights on a team-based approach to business brokerage, and the advantages of specializing in specific industry verticals. Let's dive into this engaging conversation! Lou's Journey into Business Brokerage Lou and his wife ventured into business brokerage about 20 years ago after selling their computer training businesses. They moved to Florida, where Lou discovered his passion for business brokerage. Initially working under another broker, Lou gradually built his own successful business model by hiring employees instead of contractors, paying them salaries and bonuses, and adopting a team-based approach. This allowed for better control, scheduling, and a more efficient operation. The Team Approach and the Benefits for Agents and Practices Lou emphasizes that the team concept offers numerous advantages, particularly the ability to hire young, motivated individuals who can thrive on a W2 salary with bonus commissions. This nurtures a sense of responsibility and productivity among brokers while allowing them to focus on specific tasks such as marketing, packaging deals, or closing transactions. Training and Development Training is paramount in Lou's approach. He spent considerable resources on training his team in consultative sales and other essential skills. This investment in education and mentorship paid off as it elevated his team's performance and streamlined their operations. Fostering Relationships Both Jim and Lou agree that regular, structured communication between buyers and sellers, using tools like bi-weekly phone calls, is crucial. This transparency and consistent engagement help build trust, address concerns promptly, and ultimately lead to smoother transactions. Education and Mentorship Lou and Jim underscore the importance of continuous education through IBBA classes, workshops, and conferences. They both advocate for employers to invest in their team's professional development. Not only does it enhance individual competencies, but it also raises the overall standard of the industry. The Power of Specialization Specializing in a particular vertical, such as insurance companies for Lou, allows brokers to develop deep industry knowledge. This expertise not only makes them more credible in the eyes of potential clients but also helps them understand the nuances and unique challenges of that industry. Nationwide Reach Lou successfully sold insurance businesses across the country. His specialization enabled him to anticipate market trends, understand industry-specific metrics, and establish connections with key players nationwide. The advent of virtual communication tools like Zoom has made it even easier to manage transactions across geographical boundaries. Quality of Life While discussing the importance of work, Lou brings up a critical point – quality of life. He advises brokers to enjoy their lives, invest in personal well-being, and not forget to "smell the roses." After an impactful career, Lou and his wife are now relishing their retirement, traveling, and enjoying the fruits of their labor. Advice for Aspiring Business Brokers: Build Relationships Meeting and engaging with other successful brokers can provide invaluable insights. Being open about your strengths and weaknesses and learning from others' experiences can significantly elevate your practice. Say No When Necessary Knowing when to turn down a listing is vital. Assess the business's potential thoroughly and ensure it's genuinely ready for the market. This selective approach helps maintain a high success rate and ensures that your efforts are focused on viable opportunities. Leverage Technology Modern tools like Zoom have revolutionized how we conduct our business. These tools facilitate better communication with clients and colleagues across distances, making it easier to manage and close deals efficiently. Conclusion In wrapping up our conversation, Lou encourages brokers, especially young entrants and women, to embrace the industry. He reiterates the importance of learning, mentoring, and continually improving our practices. Lou's insights and experiences remind us of the rewarding and dynamic nature of our field, filled with opportunities for those who are willing to learn and grow. We hope you enjoyed this discussion with Lou Vescio. Stay tuned for more insightful conversations, and remember, continuous learning and adaptability are key to success in business brokerage! --- If you're not already a subscriber, please consider subscribing to our YouTube channel. Like, comment on this post, and share it with your network. Your engagement helps us continue to provide valuable content for our industry. Until next time, take care and happy brokering! TOPIC KEYWORDS: "Let's Chat", Jim Parker, Lou Vescio, business broker, team approach, education, team concept /episode/index/show/2650f937-7fea-4295-89af-a90a01cfe2c2/id/31616717

Acquiring a Business With ROBS 05/22/2024

Acquiring a Business With ROBS ACQUIRING A BUSINESS WITH ROBS "Let's Chat with Jim Parker Business Broker" is proudly affiliated with the BBP Podcast Network EPISODE: 10 RELEASE DATE: May 22, 2024 YOUTUBE CHANNEL: WEBSITE: SHOW NOTES: In this episode of "Let's Chat," Jim Parker discusses how business brokers can help clients acquire businesses using their retirement funds without tax penalties through Rollovers as Business Startups (ROBS). Guest expert Suzy Granger of Guidant Financial explains the process, legal requirements, benefits, and risks associated with ROBS, including setting up a C corporation and a self-directed 401(k) plan under ERISA law. They cover scenarios, the importance of compliance, ongoing support for clients including bookkeeping, and the impact of ROBS on buyers' retirement savings and business acquisition strategies. Suzy shares insights into the setup process, optimal timing for fund transfer, and the benefits of offering retirement plans to employees in a ROBS-financed business. Like, share, and leave us a comment. Join the discussion, and don't forget to subscribe for the latest from "Let's Chat" on YouTube To connect with Suzy: email: call or text: 281.942.0530 00:00 Welcome to "Let's Chat": Insights for Business Brokers 00:43 Introducing the ROBS Strategy with Suzy 00:54 Understanding ROBS: A Deep Dive into Retirement Funds for Business Acquisition 01:48 The Mechanics of ROBS: How It Works and Its Benefits 06:21 Navigating the Risks and Compliance of ROBS 10:57 The Evolution of ROBS and Its Impact on Small Businesses 17:49 ROBS in Practice: Real-Life Scenarios and Examples 21:55 Selling a Business with ROBS: What Brokers Need to Know 24:46 Expanding the ROBS Conversation: Eligible Retirement Accounts and Deal Sizes 28:14 Exploring Tax Benefits and Corporate Structures 28:42 The Impact of Tax Code Changes on C Corps 29:14 Navigating Double Taxation and Salary Strategies 30:01 Maximizing 401k Contributions Through Dividends 30:45 Expanding Business Opportunities Across States 31:20 Evaluating Business Types for ROBS Financing 33:02 Understanding Restrictions on ROBS Fund Usage 33:51 Integrating ROBS into Business Brokerage Services 37:06 Strategic Timing for ROBS Financing in Business Deals 40:27 The Role of Business Brokers in ROBS Transactions 42:53 Success Stories and the Lifecycle of a ROBS 44:40 Future of ROBS and Financial Regulations 54:20 Final Thoughts and Contact Information BLOG: Unlocking Business Opportunities: How ROBS Can Transform Your Business Acquisition Navigating the complex world of business acquisition can often feel like an uphill battle, especially when financial constraints come into play. However, a little-known strategy could open up new horizons for aspiring entrepreneurs and seasoned business owners alike. The strategy in question? Rollovers for Business Start-ups (ROBS). Today, we delve into the intricacies, benefits, and considerations of utilizing ROBS, drawing insights from an enlightening conversation with financial expert, Suzy Granger. Understanding ROBS: A Game Changer in Business Financing ROBS allows individuals to invest their retirement funds into a new or existing business without incurring early withdrawal penalties or tax liabilities. This innovative approach offers a lifeline for buyers who might not have immediate access to liquid cash but possess substantial funds in their retirement accounts. The Conversation with Suzy Granger Jim Parker introduces us to the world of ROBS through a detailed conversation with Suzy Granger, a seasoned professional in retirement funding solutions. With over 20 years of experience, Suzy provides a comprehensive overview, demystifying the process and highlighting the unique advantages of ROBS. The ROBS Structure Explained The conversation begins with a clear explanation of the ROBS structure. Simply put, ROBS involves establishing a C-corporation that sponsors a 401(k) plan. The individual can then roll over their existing retirement funds into the new 401(k) without tax penalties, and these funds are used to acquire or invest in the business. Key Advantages Suzy succinctly outlines the primary benefits of ROBS: avoiding the hefty penalties associated with early retirement fund withdrawals and maintaining liquidity. In a climate where financial flexibility is paramount, leveraging retirement funds through ROBS offers a viable path to business ownership. Furthermore, Suzy stresses the investment aspect, clarifying common misconceptions about ROBS being considered a loan or incurring debt. The Compliance Caveat A pivotal part of the discussion revolves around compliance. Suzy warns of the stringent requirements set by the IRS and the significance of maintaining compliance to evade penalties. Through her company, Guidant, she ensures clients navigate these complexities smoothly, providing ongoing support to ensure both initial and continuous compliance. The Success Stories and Cautionary Tales From thriving jewelry businesses to less fortunate ventures, Suzy shares anecdotes highlighting the diversity of outcomes. These narratives serve as a potent reminder of the risks and rewards associated with using ROBS for business financing. Dialogue on Employee Participation An intriguing aspect of the conversation touches on employee participation in the 401(k) plan. Suzy clarifies a common concern: employees participating in the ROBS-funded 401(k) do not purchase stock in the company, but instead have a range of investment options typical of 401(k) plans. Final Thoughts The exchange between Jim Parker and Suzy Granger sheds light on the intricacies, advantages, and considerations of employing ROBS in business acquisitions. While ROBS presents a compelling option for funding, it demands careful consideration, strict compliance, and professional guidance. In stepping into the world of business ownership through ROBS, potential buyers are afforded a unique opportunity to realize their entrepreneurial dreams. Yet, the path is nuanced, filled with both opportunity and obligation. As with any significant financial decision, thorough research, due diligence, and the right professional advice are key to leveraging ROBS effectively and responsibly. Conclusion ROBS stands out as a transformative strategy for business acquisition, particularly for individuals seeking alternative funding avenues. By understanding the nuances, aligning with compliance requirements, and leveraging professional support, aspiring business owners can navigate their way to successful ventures with ROBS as their financial cornerstone. KEYWORDS: Let's Chat, Jim Parker, business broker, Suzy Granger, ROBS, retirement savings, business sales, business owners, 401(k), business financing /episode/index/show/2650f937-7fea-4295-89af-a90a01cfe2c2/id/31419617

What Makes a Good CIM? 05/06/2024

What Makes a Good CIM? WHAT MAKES A GOOD CIM? "Let's Chat with Jim Parker Business Broker" is proudly affiliated with the BBP Podcast Network EPISODE: 9 RELEASE DATE: May 6, 2024 YOUTUBE CHANNEL: WEBSITE: https://www.JimParkerBusinessBroker.com SHOW NOTES: In this episode of "Let's Chat with Jim Parker Business Broker," host Jim Parker welcomes German Fondevila, CEO of Scrybe, to discuss the critical role of high-quality, confidential information memorandums (CIMs) in business brokerage. This insightful discussion not only highlights the value of professionally crafted CIMs, but also sheds light on modern tools and strategies to elevate brokerage services. Jim Parker's interaction with German Fondevila effectively encapsulates the evolution and the future direction of business brokerage. It's a vivid reminder of the importance of constantly seeking improvement and leveraging available technology to provide the best possible service to clients in an ever-changing market landscape. Brokers, this is a discussion you won't want to miss! To connect with German and Scrybe: Subscribe for the latest from "Let's Chat" For more information selling your business, visit: 00:00 Welcome to "Let's Chat": Unveiling the Art of Confidential Information Memorandums 01:21 The Journey from Tech to Business Brokerage: German's Story 06:28 The Importance of Substance Over Style in CIMs 15:12 Crafting CIMs: The Blend of Aesthetics, Substance, and Structure 26:13 The Impact of High-Quality CIMs on Business Sales 30:58 The Challenges of Selling a Business 31:41 Innovative Strategies for Efficient Business Sales 32:24 The Impact of Seller Interviews on the Sales Process 38:20 Exploring the Significance of Teasers in Business Sales 41:05 The Importance of Quality CIMs in Business Brokerage 52:28 Leveraging Technology for Faster CIM Turnaround 55:26 Final Thoughts and Offers for the Audience BLOG: The Impact of High-Quality CIMs in the Business Brokerage Industry Introduction The business landscape is always evolving, with mergers and acquisitions (M&A) playing a critical role in this high-stakes arena. A key element in the smooth operation of these transactions is the confidentiality information memorandum (CIM) — a document that sells the business in the best light possible while maintaining the confidentiality of its sensitive data. This podcast episode explores the indispensable significance of a well-crafted CIM through an engaging conversation between Jim Parker, a seasoned business broker, and German, an expert on CIMs, and CEO of Scrybe, a company specializing in creating top-tier CIMs. The Vital Role of CIMs Jim opens the discussion, highlighting the paramount importance of the CIM in the brokerage industry. A good CIM not only presents a business attractively, but does so in a manner that is thorough and compelling to potential buyers. German, bringing years of experience from the tech and venture capital sectors, echoes this sentiment, adding that a CIM is a crucial document that bridges the gap between sellers and strategic or institutional buyers by providing a comprehensive, polished snapshot of the business. Challenges and Solutions Creating a CIM is no small feat. It demands a specific skill set, including deep analytical capabilities and an eye for engaging presentation. The complexity of writing a CIM lies not just in formulating a compelling narrative, but also in ensuring all the factual and financial details are precise and persuasive. German shares that the genesis of Scrybe was solving this very pain point — making the process of creating detailed, informative, and visually appealing CIMs more efficient and accessible for business brokers, thus elevating the quality of information provided to potential buyers. The Scrybe Advantage The conversation then delves into the unique approach Scrybe takes in crafting CIMs. Utilizing advanced technology, including artificial intelligence, Scrybe can reduce turnaround times significantly while ensuring high-quality output. Jim was particularly impressed by the quick turnaround — up to two days for main street deals and up to four days for more extensive M&A transactions. This efficiency, paired with the meticulous review process each document undergoes, ensures that brokers can represent their listings confidently, knowing they're equipped with the best possible sales tool. Senior Perspective on Industry Trends Jim notes that the brokerage industry has witnessed a marked improvement in the quality of CIMs over recent years, attributing this progression to the adoption of sophisticated tools like those offered by Scrybe. He strongly believes that as the industry continues to mature, the expectation for high-quality, detailed, and visually engaging CIMs will only increase, making services like Scrybe's invaluable for those looking to stay competitive and provide exceptional value to their clients. Conclusion In a world where the first impression can make or break a deal, the quality of a CIM cannot be understated. It represents the business, the broker's professionalism, and the seriousness with which a listing is approached. Tools and services that enhance the quality and efficiency of creating such documents, like those provided by Scribe, are not just beneficial but essential for the modern broker. As we move forward, embracing these advancements will be key to successful transactions and the overall elevation of the brokerage industry's standard. TOPIC KEYWORDS: Let's Chat, Jim Parker, German Fondevila, Scrybe, business broker, business brokerage, CIM, confidential information memorandum, industry standard, seller interview, /episode/index/show/2650f937-7fea-4295-89af-a90a01cfe2c2/id/31102613

Key Strategies For Business Brokers 04/24/2024

Key Strategies For Business Brokers KEY STRATEGIES FOR BUSINESS BROKERS "Let's Chat with Jim Parker Business Broker" is proudly affiliated with the BBP Podcast Network EPISODE: 8 RELEASE DATE: April 24, 2024 YOUTUBE CHANNEL: WEBSITE: SHOW NOTES: *Please be aware that there are some audio issues throughout this video. We apologize, but the content was too good not to share* In this episode of "Let's Chat with Jim Parker Business Broker," host Jim Parker, a business broker specializing in businesses with gross sales between 1 million and 10 million, engages in conversation with his guest, Kyle Griffith, a respected business intermediary from NYBB and former chairman of the International Business Brokers Association. The discussion covers a range of topics, including the importance of education for brokers, the value of the IBBA for support and learning, the process of selling businesses, and strategies for success in the industry. Kyle shares insights into building relationships with clients, understanding the emotional aspects of selling a business, the significance of focusing on verticals, and leveraging referral networks. They also touch on challenges in the industry and the future of business brokerage. The episode aims to provide valuable advice for both new and experienced brokers on how to excel in their careers. To connect with Kyle: Subscribe to for the latest, and visit his website for more on selling your business: 00:00 Welcome to Let's Chat: A Dive into Business Brokerage 00:24 Introducing Kyle Griffith: A Respected Business Intermediary 01:27 The Impact of the International Business Brokers Association (IBBA) 02:36 Sharing Experiences: The Power of Conferences and Education 04:34 The Importance of Mentorship and Networking in Business Brokerage 10:37 The Journey to Success: Patience, Education, and Resilience 23:38 Maximizing Referrals: Building Strong Relationships with Clients and Advisors 30:31 Navigating Financial Advisor Relationships and Referrals 32:39 Building Deep Relationships with Referral Sources 34:21 Guiding Sellers Through the Business Sale Process 36:41 The Importance of Understanding and Empathy in Brokerage 44:12 Educating and Preparing Business Owners for Sale 48:48 Mastering Your Craft as a Business Broker 53:04 Closing Thoughts on Business Brokerage Success 54:27 The Future of Business Brokerage and Vertical Specialization BLOG In the world of business brokerage, mastering the craft is not just a perk; it's a necessity for success. Business brokers serve as the bridge between sellers and buyers, guiding them through the complex journey of selling or purchasing a business. I recently sat down with Kyle Griffith, a seasoned business intermediary and the former chairman of the International Business Brokers Association (IBBA), to discuss the nuances of the trade, the impact of education, and the secrets to a successful career in brokerage. The Crucial Role of Education and Mastering Your Craft Kyle emphasizes that the cornerstone of a successful career in business brokerage lies in education and mastery of the profession. "Learn your craft," Kyle advises, underscoring the importance of understanding the intricacies involved in brokerage. He highlights that the most significant complaint from the business community is encountering brokers who appear to wing their way through transactions without a deep understanding of the process. To stand out and serve your clients best, Kyle suggests focusing on continuous learning and seeking out opportunities to expand your knowledge. The Value of Networking and Mentorship Building a network of experienced peers and finding mentors within the industry can dramatically shorten the learning curve for newer brokers. Kyle shares that participating in trade associations, local conferences, and joining a mastermind group are excellent ways to connect with peers and learn from those who have paved the way. "Tapping into your local trade associations and seeing what other folks are doing" can offer invaluable insights into best practices and innovative approaches to brokerage. Action, Resilience, and Specialization Taking action and having the resilience to push through challenges are key attributes Kyle highlights for those in the business brokerage field. The journey involves making calls, sending emails, and continuously striving to improve your skills and service offering. Kyle also points toward the benefits of specializing in specific verticals or niches within the industry. This specialization can help brokers become the go-to expert in a particular sector, offering deeper insights and a more targeted service to clients. The Future of Business Brokerage Looking towards the future, Kyle believes that focusing on vertical specialization is going to be a significant development in the industry. This approach not only allows brokers to deepen their knowledge in specific areas but also to expand their client base beyond geographic limitations, thanks to the growing acceptance of virtual meetings and transactions. A Personal Touch in a Professional World Both Kyle and I share a philosophy that transcends mere transactions – viewing our role as that of a trusted advisor, coach, and friend to our clients. It's about understanding their motivations, their dreams, and their concerns genuinely. At its heart, business brokerage is about facilitating transitions, whether for a business owner looking to retire or an entrepreneur eager to embark on a new venture. In conclusion, the path to becoming a successful business broker is multifaceted. It demands a commitment to education, a willingness to connect and learn from others, the courage to specialize, and the empathy to understand and support your clients' aspirations. As Kyle Griffith aptly puts it, "It's more than a transaction; it's helping someone transition to a new phase of their life." This ethos, combined with a solid grasp of the technical and emotional aspects of brokerage, sets the foundation for a fulfilling career in business brokerage. /episode/index/show/2650f937-7fea-4295-89af-a90a01cfe2c2/id/30957033

A Legal Perspective on Business Sales 04/10/2024

A Legal Perspective on Business Sales "Let's Chat with Jim Parker Business Broker" is proudly affiliated with the BBP Podcast Network EPISODE: 7 RELEASE DATE: April 10, 2024 YOUTUBE CHANNEL: WEBSITE: In this episode of "Let's Chat with Jim Parker Business Broker," host Jim Parker welcomes closing attorney Deborah A. Carman to give legal insight into the process of selling a business. They discuss key aspects such as Letters of Intent, asset purchase agreements, and tactics for overcoming common challenges like client concentration. The importance of communication, teamwork, and the role of intermediaries in facilitating transactions is emphasized, alongside practical strategies for negotiations, dealing with leases, and ensuring smooth transitions post-sale. Special attention is given to state-specific practices, notably in Florida, and creative financing methods like forgivable seller's notes in SBA loans. To connect with Deborah Carman, visit Subscribe to for the latest, and visit my website for more on selling your business: 00:00 Welcome to "Let's Chat" 00:25 Introducing Closing Attorney Deborah Carman 01:05 Diving Deep into Contracts and LOIs 02:28 The Intricacies of Business Deals in Florida 04:29 Navigating Client Concentration and SBA Lenders 08:51 The Art of Crafting an Effective LOI 35:23 Understanding Rollover Equity in M&A Deals 39:37 Navigating Seller and Buyer Dynamics in Business Deals 40:13 The Emotional Rollercoaster of Selling a Business 42:46 Understanding Rollover Equity and Legal Terms 49:27 The Importance of Detailed LOIs in Business Transactions 53:34 Addressing Earn outs and Employee Concerns in Deals 56:48 The Difference Between Main Street and M&A Deals 01:04:23 Building a Successful Team for Business Transactions 01:14:07 The Power of Communication in Closing Deals 01:18:39 Final Thoughts and Advice for Business Brokers BLOG: Navigating Business Sales with Expertise: A Deep Dive into the World of Business Brokering In an extensive and enlightening conversation between Jim Parker, a seasoned business broker, and Deborah Carman, a highly respected closing attorney, we unravel the intricacies involved in business sales, particularly focusing on sectors ranging from Main Street to M&A (mergers and acquisitions). Their dialogue sheds light on the critical aspects of business transactions, from legal agreements to strategic negotiation, offering invaluable insights for business brokers, sellers, and buyers alike. Understanding the Importance of Expert Collaboration The realm of business sales is complex, demanding a collaborative approach from various professionals to ensure a smooth transition. Jim Parker emphasizes the significance of engaging with SBA lenders, attorneys, CPAs, and closing attorneys to navigate the multifaceted process effectively. The rapport between a business broker and a closing attorney, as demonstrated through Jim and Deborah's partnership, underscores the necessity of expert collaboration in achieving successful outcomes for all parties involved. The Critical Role of Legal Agreements in Business Transactions Deborah Carman delves deep into the importance of meticulously drafted legal agreements, highlighting the nuances of Letters of Intent (LOIs) and Asset Purchase Agreements. She points out common pitfalls and areas often overlooked, such as earnouts, leases, and employee transition plans, which can significantly impact the finalization of a deal. The discussion also touches upon the fluid dynamics between Main Street and M&A transactions, illustrating how agreements need to be tailored to the specific nature and size of the business involved. Strategies for Effective Negotiation and Problem Solving Both Jim and Deborah advocate for a proactive, creative approach to negotiation and problem solving throughout the transaction process. By engaging in open, structured communication between buyers and sellers, they argue, potential conflicts can be mitigated, and solutions can be found that benefit both parties. This collaborative effort is vital in addressing challenges that may arise, from valuation discrepancies to post-closing transitions. Industry Insight: From Main Street to M&A The conversation provides a comprehensive overview of the business brokering industry, contrasting the approaches and considerations required for Main Street deals versus larger M&A transactions. Issues such as working capital, employee handover, and the significance of leases are discussed, offering listeners a peek into the strategic thinking and planning that goes into various types of business sales. Conclusion: A Testament to Successful Collaboration Jim Parker and Deborah Carman's insightful discussion serves as a testament to the power of successful collaboration between business brokers and closing attorneys. For anyone involved or interested in the business sale process, this conversation provides a wealth of knowledge and best practices. It emphasizes the importance of understanding legal complexities, fostering open communication, and leveraging expert advice to navigate the challenging yet rewarding world of business brokering. This dialogue not only illuminates the path to successful business sales but also highlights the importance of building a trusted network of professionals who can guide sellers and buyers through the intricacies of the process, ensuring a mutually beneficial outcome for all parties involved. TOPIC KEYWORDS: Jim Parker, Deborah Carman, business broker, business sale, collaboration, closing attorney /episode/index/show/2650f937-7fea-4295-89af-a90a01cfe2c2/id/30771003

Insight From Top Selling Business Broker Jeff Snell 03/27/2024

Insight From Top Selling Business Broker Jeff Snell LINK TO YOUTUBE: My Website: EPISODE NUMBER: 6 RELEASE DATE: March 27, 2024 SHOW NOTES: In this episode of 'Let's Chat,' host Jim Parker chats with Jeff Snell, one of the country's top-tier business brokers and former chairman of the International Business Brokers Association. Throughout their conversation, they discuss the challenges and triumphs experienced in their profession, share some valuable insights, and provide advice for emerging brokers in the industry. 00:07 Introduction 00:31 Getting to Know Jeff Snell 01:27 Initial Experiences as a Business Owner 03:13 Transition into Business Brokerage 01:07 Industry Challenges and Opportunities 07:00 Imparting Wisdom to Emerging Brokers 08:21 Valuing Quality Listings 38:07 Role of Technology in Business Brokerage 43:29 Being Up-To-Date with Best Practices 49:50 Final Thoughts and Takeaways BLOG: Inside the Mind of Jeff Snell – A Leading Business Broker In this era of exploding opportunities and demanding entrepreneurship, the role of a business broker has never been more central. One notable person who stood out in the business brokerage realm is Jeff Snell, a top-tier business broker and former chairman of the International Business Brokers Association (IBBA). Jeff's journey in the business brokerage profession was a serendipitous evolution of his expertise and experience. Starting from a technology company, Jeff journeyed from being a seller to a buyer and finally realized his knack for the brokerage industry. Driven by an unsatisfactory experience with existing brokers, he took his destiny into his own hands and became a broker himself. Jeff recognized that every business, no matter how niche, holds potential. Whether it's a business selling military tactical equipment or operating a livery service for canoes and kayaks, there's always potential for brokerage and the prospect of success. He recently leveraged AI technology to help draft CMRs for niche businesses, revealing the power of modern technology in traditionally manual processes. The evolution of technology has significantly impacted Jeff's practice. From having a fancy website to owning a highly efficient CRM system, technology's role in the success recipe can't be overstated. Jeff believes technology will continue to improve the process of brokerage, rather than replace brokers, in the foreseeable future. Despite all the technical leverage, Jeff reminds us that the business brokerage profession is rooted in relationships. Trust, rapport, and steadfastness form the backbone of all successful business transactions. Whether it’s with a seller, a buyer, or another broker, maintaining a respectful and honest relationship is the key to success. Jeff asserts that every interaction is an opportunity to learn and grow. He believes that experiencing challenges, facing failures, and braving the unknown are integral to the business broker profession. Being selective about listings, understanding each business's unique challenges, and maintaining an open mind for continuous learning are his essential tips for anyone looking to make a mark in the business brokerage industry. PODCAST TOPIC KEYWORDS: Jeff Snell, Jim Parker, International Business Brokers Association, IBBA, business brokerage, technology, CRM, AI, listing, educational, transactions, best practices, peer groups, industry, selective, conferences, referral, relationships, livery business, niche industries, unique challenges, sellers, buyers, CBI, M&As /episode/index/show/2650f937-7fea-4295-89af-a90a01cfe2c2/id/29743868

Raising SBA 7a Loan Limits to $10 Million? 03/22/2024

Raising SBA 7a Loan Limits to $10 Million? RELEASE DATE: MARCH 22, 2024 YOUTUBE CHANNEL: MY WEBSITE: SHOW NOTES: "Let's Chat with Jim Parker Business Broker" is proudly affiliated with the BBP Podcast Network. Fellow business brokers, this is an urgent call to the business brokerage community. Please tune in to this special episode of "Let's Chat." It contains an important message you all need to hear. We need you! In this special episode of "Let's Chat with Jim Parker Business Broker," host Jim Parker focuses on a crucial initiative spearheaded by Steve Mariani from Diamond Financial: to increase the current SBA 7A lending limits from $5 million to $10 million. This adjustment is deemed vital for the business brokerage industry, buyers, sellers, lenders, and the broader U.S. economy. Mariani, recognized as a key figure in SBA lending within the industry, shares insights on the necessity of this change, reflecting on the challenges faced by brokers in securing listings and the overall state of SBA lending. Jim and Steve emphasize the collective effort required from the business brokerage community, including a need for signing and disseminating a petition to draw attention and support from relevant state associations, the SBA, and Congress. Through engaging discussions, the show highlights the significance of supporting small businesses and the systemic changes needed to enhance the industry infrastructure for future growth. 00:00 Welcome to Let's Chat: A Crucial Discussion for Business Brokers 00:31 Introducing Steve Mariani: A Key Player in SBA Lending 01:08 The Push to Increase SBA Lending Limits: A Game Changer 01:35 Understanding Steve Mariani and Diamond Financial's Role 04:51 Exploring the Impact of Recent SBA Rule Changes 09:53 The Importance of SBA Lending for the U.S. Economy 13:16 Mobilizing Support for Increased SBA Lending Limits 15:09 The Potential Benefits of Expanding SBA Lending 18:59 A Call to Action: Supporting the SBA Lending Increase Initiative 23:22 Exploring New Avenues for Business Owners to Exit 23:42 The Challenges of Financing and Exiting for Older Business Owners 24:33 Adjusting to Economic Changes: The Impact on Business Valuation 27:11 The Importance of Supporting Small Businesses and Their Employees 27:39 The Shift Towards Individual Buyers Over Private Equity 31:50 Advocating for Increased SBA 7A Loan Limits 38:22 The State of the Business Brokerage Industry and Future Outlook 45:47 A Call to Action: Supporting the Increase of SBA 7A Loan Limits BLOG: Elevating Small Business Financing: The Push for Higher SBA 7A Lending Limits In this edition of "Let's Chat," we delve into a pivotal moment for small business support and funding across the United States. The spotlight is on the efforts to profoundly transform the SBA 7A lending limits, amplifying the potential for growth, sustainability, and innovation within the small business sector. A Crusade for Change At the heart of today’s discussion is Steve Mariani's audacious campaign to double the SBA lending limits for 7A loans from $5 million to $10 million. This significant push comes at a critical juncture when economic conditions, evolving business needs, and the undying spirit of American entrepreneurship call for greater support mechanisms from financial institutions and government policies. Who is Steve Mariani? Steve Mariani, a beacon of knowledge and expertise in SBA lending, has been instrumental in our industry, fostering growth and facilitating success stories through Diamond Financial. His connections with a myriad of lenders at a credit underwriting level provide him with unparalleled insights into the real-time challenges and opportunities within the SBA lending landscape. His efforts go beyond mere financial transactions, aiming at structuring deals that truly benefit all parties involved, guided by a comprehensive understanding of SBA rules and guidelines. The Call for Action The proposed increase in lending limits is not merely a financial adjustment; it's a strategic move aimed at empowering a wider spectrum of business transactions, from higher net-worth individuals eyeing significant investments to long-standing business owners seeking to capitalize on their life's work. Moreover, it addresses the evolutionary trajectory of businesses that, due to inflation and rising operational costs, now find themselves in a higher valuation bracket, inadvertently outpacing the current SBA lending caps. The underlying implications of this initiative stretch far beyond individual businesses. This change promises to bolster the U.S. economy by facilitating more substantial business transactions, enabling seasoned professionals to bring their expertise to more significant ventures, and ensuring that more businesses can benefit from SBA-backed loans. A Unified Industry Push The vision for elevated SBA lending limits is grand, yet its fruition requires a collective effort from business brokers, financial planners, attorneys, and stakeholders across the industry. A proposed petition, soon to be circulated, beckons the support of all involved in the business brokerage and M&A sectors, advocating for a united front to present this significant change to the SBA and Congress. The Bigger Picture: Supporting America's Backbone Adjusting the SBA 7A lending limits is just the tip of the iceberg. The broader goal is to instill a mechanism for periodic re-evaluation of these limits, ensuring they remain aligned with economic conditions, inflation, and the evolving needs of the small business community. This strategic foresight promises not just to address the immediate financial challenges, but to pave a sustainable pathway for the growth and development of small businesses across the nation. The Path Forward As we stand on the brink of potentially transformative changes in small business financing, it's crucial to acknowledge the shared responsibility to advocate for policies that support the entrepreneurial spirit and drive economic growth. The push for higher SBA 7A lending limits embodies this collective endeavor, promising a brighter, more inclusive future for small business financing in America. As this initiative gains momentum, your partnership, support, and active involvement are crucial. Together, we can redefine the landscapes of opportunity for small businesses nationwide, strengthening the very fabric of the American economy. /episode/index/show/2650f937-7fea-4295-89af-a90a01cfe2c2/id/30506298

CEO of Transworld Business Brokerage 03/13/2024

CEO of Transworld Business Brokerage Welcome! Let's Chat has been on YouTube for over 3 years - so there's lots more to experience. For older (but still powerfully important) episodes, go subscribe on YouTube! Link is below. And thanks for being here!! LINK TO YOUTUBE: My Website: EPISODE NUMBER: 4 RELEASE DATE: March 15th, 2024 SHOW NOTES: An In-depth Conversation with Andy Cagnetta: The CEO of Transworld Business Brokerage On Industry Insights and the Past, Present, and Future of Business Brokerage In this dynamic episode of the Let's Chat podcast series, our host Jim Parker sits down with Andy Cagnetta, CEO of Transworld, to discuss his journey in the business brokerage industry, the power and impact of co-brokering, giving back to the community, and the future of business brokerage. Andy's enlightening insights into the sector's growth and his personal experiences offer a unique perspective for listeners. 00:00 Introduction and Guest Background 01:23 Andy's Journey in Business Brokerage 03:55 Growth and Expansion of Transworld 05:03 Philosophies and Principles for Success 07:32 The Evolution of Business Brokerage 12:14 The Future of Business Brokerage 13:02 The Impact of Technology and AI 18:18 The Potential of Crowdfunding and Equity Sales 23:23 Current Challenges and Opportunities in the Industry 25:54 The Evolution of Business Brokering in Florida 26:30 The Impact of Education and Diversity in Business Brokering 28:23 The Rise of Women in Business Brokering 29:21 Preparing for the Future: Adapting to Technological Changes 31:53 The Importance of Cooperation and Community in Business Brokering 33:20 Effective Marketing Strategies for Business Brokers 38:05 The Debate: Specializing vs. General Business Brokering 41:16 Advice for New Business Brokers: Hard Work and Problem Solving 46:21 Characteristics of Successful Business Brokers 48:51 Final Thoughts: Giving Back to the Community and Industry BLOG: I recently had the opportunity to sit down with none other than Andy Cagnetta, a giant in the business brokerage industry. Andy is the CEO of Transworld, the largest business brokerage company in the world, and has a wealth of industry experience. However, Andy's contributions extend beyond his corporate role. He’s a former IBBA chairman and also serves on the board of the Business Intermediary Education Fund. Moreover, his philanthropy initiatives are commendable. But one of the things he’s best known for is his charity work, notably the ‘Andy's Pasta Dinner’. Regardless of his vast accomplishments, what strikes me about Andy is his humility and passion for the industry. I asked Andy about his personal journey from the beginning until now. He started in the Northeast United States, but after buying and selling a small business in Hartford, Connecticut, he and his wife moved to South Florida. Interestingly, he purchased an already successful business without consulting a business broker, simply because he wasn’t aware of the existence of such a service. After moving to South Florida, he bought into a salesperson role at Transworld. He did exceptionally well, selling nine businesses in his first year. Two years later, he had the opportunity to buy Transworld and started to grow it. Over time, Transworld expanded beyond Florida, and they partnered with the United Franchise Group to further extend their reach. Andy explains that his main philosophy is to help people. He sees his role as providing the agents that work with him the best tools they can get, all the while being a trusted advisor within his community. He believes that as long as they stay honest, transparent and engaged in good deals for good people, success will naturally follow. This is a principle he demonstrates not only within his company but also within the business brokerage community, serving the interests of the industry as a whole. Throughout our chat, Andy reflected on the evolution of the industry, from how business brokers operated when he first started to how technology has leveled the playing field now. However, he also credited the pioneering brokers from the past for creating a marketplace, increasing transparency, and establishing a cooperative system which he believes should be continued. Andy sees the future of the business brokerage industry as exciting with the aid of AI and access to data. While these technologies may enable brokers to handle more deals efficiently, Andy stresses that the need for a human touch and trust remains essential. Andy offers some indispensable advice for new brokers. Firstly, he emphasizes the importance of hard work, dispelling any notion that this industry is a part-time venture. Secondly, he stresses the need to continue learning and experimenting. According to him, problem-solving skills and the power to persuade are crucial for a successful business broker. Lastly, and perhaps most importantly, he urges brokers to give back to their community. This doesn't just enhance their reputation, it also builds trust and forges strong relationships. PODCAST TOPIC KEYWORDS: Jim Parker, Andy Cagnetta, Transworld, business brokerage, CEOs, BBF chairman, community work, charity work, personal journey, Florida, business brokers, entrepreneur, partnerships, united franchise group, Transworld Business Advisors, business expansion, business philosophy, business education, AI, industry trends, business brokers' future, script editing, video editing app Reach out to Andy at: /episode/index/show/2650f937-7fea-4295-89af-a90a01cfe2c2/id/29743373

Insight From a Franchise Specialist 03/01/2024

Insight From a Franchise Specialist LINK TO YOUTUBE: My Website: EPISODE NUMBER: 3 RELEASE DATE: March 1st 2024 SHOW NOTES: Insight From a Franchise Specialist AKA... Overcoming Buyer's Fears: A Conversation with Tom Scarda of the Franchise Academy In this podcast episode, the guest is Tom Scarda, a franchise specialist from the Franchise Academy, who shares his experience in buying and selling franchise businesses and offers insights on overcoming fears associated with such decisions. An important discussion topic is understanding the motivations of buyers, their fears, and how to manage them effectively. Tom also speaks about his personal journey from working in a subway conductor job to becoming a successful business franchisee. 00:00 Introduction and Guest Presentation 01:17 Guest's Journey into Franchising 03:51 Overcoming Buyer's Fears 04:46 Guest's Background and Franchise Academy 07:09 Guest's Experience with Franchises 11:05 Understanding Buyer's Concerns 19:47 Addressing Buyer's Financial Expectations 25:12 Overcoming Fear and Embracing Uncertainty 25:39 The Magic of Choosing Uncertainty: A Book Insight 26:01 The Dilemma of Choosing Between Uncertainty and Unhappiness 26:37 The Importance of Growth and Stepping Out of Your Comfort Zone 27:01 The Impact of Business Ownership on Personal Life 28:09 The Midlife Awakening: A New Perspective on Midlife Crisis 28:44 The Role of Spousal Support in Business Acquisition 31:35 The Unexpected Success of a Smoothie Franchise in Winter 32:52 The Importance of Understanding Buyer Motivations 43:37 The Role of Business Brokers as Consultants and Friends 47:20 Closing Remarks and Recommendations BLOG: Owning and running a business is a profound journey—the demands are high, but so are the rewards. Recently, I had the pleasure of sitting down with Tom Scarda, a highly accomplished figure in the franchising world and a beacon for individuals looking to navigate their way to successful business ownership. Tom Scarda is no stranger to the world of business; he has carved his own successful path as the founder of the Franchise Academy. After having several engaging conversations with business brokers from around the country and Canada, and having written two books on overcoming fears in business, Tom Scarda knows what it takes to be successful in the world of franchising. He has learnt the art of selling not just any business, but franchise businesses. His journey is nothing short of inspirational, having gone from being notoriously dubbed as the 'worst English speaker' by his teachers, to becoming a best-selling author who now helps others master the art of franchising. Being naturally inclined towards writing since his early years, Tom revealed how he faced setbacks due to people's criticisms and doubts about his skills. Resilient in the face of adversity, he continued to pursue his passion and invested in educating himself further. His journey into the franchising world began around 2014 when he authored his first book, 'The Magic of Choosing Uncertainty.' Overcoming fear is a vital aspect of venturing into the world of business. Tom elaborates on how fear, primarily fear of the unknown, often becomes a considerable obstacle for potential business owners, sending them scurrying back to their comfort zones. It's a natural human tendency to be resistant to change, but as Tom emphasizes, embracing this fear and uncertainty can lead to a fulfilling life. His first book aimed to help these people conquer their fears and step into the world of business assuredly. In his journey through the world of franchising, Tom had his fair share of highs and lows. His first franchise, Maui Waui Smoothies, was an incredible success that allowed him to semi-retire at 41. However, his second venture, Super Suppers, failed and resulted in him losing almost his entire life savings. Despite this devastating blow, he persisted on his entrepreneurial path and transformed his heartbreaking loss into insightful lessons for others. Using his personal experiences, he authored his second book, 'Franchise Savvy,' advising people on avoiding the mistakes he made and achieving success in their first attempt at franchising. Tom's insight extends beyond selling franchises; he provides valuable advice for potential business buyers. He guides them through their fears, understanding that a significant part of their anxiety stems from the unknown factors of running a business. He encourages them to acknowledge the fear but not allow it to rule their decisions. Furthermore, he also reminds business brokers that buyers' primary motivation may exist beyond merely wanting to earn more money. Understanding their lifestyle goals is crucial. So, the next time you find yourself dwelling on the uncertainty of stepping into the business world, remember Tom's wise advice: choosing uncertainty could lead to your most fulfilling life yet. Find Tom Scarda at PODCAST TOPIC KEYWORDS: Tom Scarda, Jim Parker, Franchise Academy, business brokers, attorneys, SBA lenders, sell businesses, franchise businesses, buyers fears, The Magic of Choosing Uncertainty, Franchise Savvy, selling franchise businesses, Uncertainty, Fear, Subway Conductor Job /episode/index/show/2650f937-7fea-4295-89af-a90a01cfe2c2/id/29743708

Financial Leadership with Mike Jerman 02/15/2024

Financial Leadership with Mike Jerman LINK TO YOUTUBE: My Website: EPISODE NUMBER: 2 RELEASE DATE: Feb 15th 2024 SHOW NOTES: In this episode of 'Let's Chat,' host Jim Parker, a business broker specialist, sits down with Mike Jerman from Hollywell Partners to discuss the vital and often underappreciated aspect of business transactions - Quality of Earnings (QOV), from the perspective of both brokers and businesses. Topics discussed include Mike's role in providing quality of earnings reports, the necessity of these reports in business transactions, the role of due diligence, and how understanding quality earnings can impact business valuations and sales. 00:07 Introduction 00:28 Understanding Quality of Earnings 00:53 The Role of Hollywell Partners 01:48 Peek into Past Transactions and Client Experience 02:31 Understanding QOV Light 05:34 Decoding Financial Due Diligence 08:29 Importance of Detailed Revenue Testing 09:52 Costing of Quality of Earnings light 17:51 Pre-deal Evaluations and Broker's Perspective 31:03 Relevance of Working Capital in Deal Discussions 34:05 Wrap Up & Contact Information BLOG: In a recent episode of the show 'Let's Chat', host Jim Parker sat with Mike Jerman from Hollywell Partners to shed light on the topic of the Quality of Earnings (QoV) in business transactions. Jim, a specialist in selling businesses that have gross sales between $1 million and $10 million, is equipped with revealing knowledge of the business brokerage sphere. The conversation kicked off with a detailed introduction to QoV. This concept seizes the spotlight when the stakes are high, and the companies involved in the transactions are significantly large. The understanding of quality earnings is crucial for business brokers, as it's needed from time to time. Mike Jerman, a leading figure in creating QoV reports, shared his insights on the topic. Jerman shared insights into his company's operations, stating that Hollywell Partners, at the end of the day, are a group of hard-core accountants. As a registered CPA firm, Hollywell Partners specializes in producing QoV reports. Their services particularly cover non-attest diligence, which deals with M & A transactions on both the buyer's and seller's end. The company's operations also include on-site field exams and verification of assets. Despite the prevalence of audited financials, companies often request a QoV to get focused on operational metrics instead of financial statements. Mike revealed that the firm worked with Jim on a recent transaction, providing his first-hand experience of Hollywell Partner's top-notch services. When the conversation moved towards the subject of QoV light, Jerman elucidated its purpose and highlighted its relevance to smaller transactions. Essentially a condensed version of QoV, its main functions include the analysis of P&L and working capital. Business brokers often encounter situations where a QoV report becomes a necessity. In these instances, Mike advises them not to panic, as it is an excellent process for the buyer to ensure the quality of their investment. QoV light is tailored for deals under $25 million, including enterprise value or gross sales. In the business world, these are considered small transactions. The tool is geared to smaller transactions, rendering it ideal for a company size within the $1 to $10 million range that Jim focuses on. Jerman emphasized the importance of distinguishing between the shiny piece of paper that cosmetics financial statements and an actual QoV that includes testing. Hollywell's method includes a 'cash proof' that independently verifies against bank statements to review revenue recording and assess the operational cash flow. Honesty from the seller's side is paramount to a successful QoV. Jerman highlighted that sellers can avoid unnecessary hassle by being upfront about certain transactions. A cover-up will likely be discovered during the evaluation, leading to credibility issues and potential deal-breakers. Jerman hailed the crucial role brokers play in a smooth business transaction. Business brokers' expertise comes in handy in navigating the highs and lows of the selling process. With QoVs shedding light on the financial health of a company, they are empowered to make more informed decisions, hence the need for a QoV before a purchase. In instances where irregularities are unearthed during a QoV, Jerman's team seeks to identify the root cause of the error first. They then share the potential effects of the irregularity with the buyer and leave the ultimate decision to them. Jerman stressed that even when a deal is audited there is never an absolute 100% comfort. However, a transaction can move forward with a relative degree of certainty. Mike Jerman provides significant insight into a complex but crucial component of business transactions the Quality of Earnings (QoV). Whether you're a broker preparing to list a business or a business owner considering selling going through the QoV process with professionals like those at Hollywell Partners will provide essential transparency and increase the likelihood of success. PODCAST TOPIC KEYWORDS: Let's Chat, CPAs, business brokers, Mike Jerman, quality of earnings reports, Hollywell Partners, remote basis, audited financials, QOV, transaction, buy side, sell side, metrics, working capital, EBITDA, adjusted EBITDA, inventory turn, sell side QoV, QoV light /episode/index/show/2650f937-7fea-4295-89af-a90a01cfe2c2/id/29743618

SBA Lending Tips with Steve Mariani 02/01/2024

SBA Lending Tips with Steve Mariani LINK TO YOUTUBE: My Website: EPISODE NUMBER: 1 RELEASE DATE: February 1st 2024 SHOW NOTES: Maximizing Success in Business Acquisition through Smart Prequalification In this episode, Jim Parker, a seasoned business broker sits down with Steve Mariani from Diamond Financial to discuss the nuances and importance of pre-qualifying a buyer, especially in the context of SBA loans. Their chat touches on the broker's role in the process, the need for the buyer to establish a strong relationship with the seller, and the critical elements a lender looks for in a buyer's profile. This discussion provides an in-depth understanding of the interplay between buyers, sellers, brokers, and lenders and their collective roles in ensuring an efficient transaction. With real examples, they delve into the various factors that could make or break a deal. 00:07 Introduction 00:26 The Guru of SBA Lending 00:38 The Importance of Pre-Qualification 01:51 The Process of Pre-Qualification 03:14 Understanding Credit Report 15:04 The Resume: The Third Pillar 10:02 Personal Cash flow Analysis 46:31 Why Pre-Qualify a Buyer Upfront? BLOG: In business brokering, screening potential buyers is a critical step to ensure the success of any transaction. It’s essential to have serious prospects who are not just capable of paying but are the best match for the business. Setting clear expectations about the buyer qualification process can prevent unnecessary hiccups that may delay or even halt the sale. However, it’s a meticulous process that requires attention to detail and a keen understanding of the buyer’s capability to own and run the business. When qualifying the buyer, brokers should look into four essential components: the buyer's experience, which is detailed in the resume; credit report, showing their creditworthiness; personal financial statement, outlining their financial health; and, a personal cash flow analysis determining their current and future ability to finance the purchase. In analyzing these components, the broker, or in some cases, the lender, is looking for signs of financial capacity, relevant experience, and money management skills. A buyer who can prove their strength in these areas is more likely to secure a loan for the purchase, reducing the chances of the deal falling through. In business brokering, trust and rapport need to exist between the buyer, seller, and the broker. A good broker wants the best for all parties involved, which includes finding the right buyer who will successfully run the business in the long term. Open communication lines and frequent update meetings ensure that all involved parties are on the same page. This ongoing dialogue fosters a strong collaborative relationship, which is beneficial in the long run, particularly during the transition phase after the sale. Prequalifying buyers is a significant step in business brokering. It eliminates the prospect of dealing with individuals who aren't a good fit for the business or may not have the financial capacity to complete the purchase. The process may be time-consuming and meticulous, but it’s a worthy investment to ensure a smooth, successful transaction that benefits both the buyer and the seller. PODCAST TOPIC KEYWORDS: Jim Parker, Steve Mariani, business brokers, CPAs, lenders, SBA lending, financing, personal financial net worth statement, confidentiality agreement, businesses, SBA loan, broker inquiry, credit report, bio of their background, buyer pre qualification, bank statements, buyer seller phone call, buy a business, transaction, cash injection, money management skills, transitional questionnaire, Diamond Creek Wild Letter, collateral, financial strain, credit score /episode/index/show/2650f937-7fea-4295-89af-a90a01cfe2c2/id/29743558

Let's Chat with Jim Parker, Business Broker

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