1. The Role of the Business Broker CERTIFIED BUSINESS BROKER BEST PRACTICES The Most Challenging Globally Recognized Business Training & Certification Programs

2. The Role of the Business Broker: The Market The Roles Independent or Franchise? Income ExpectationsCERTIFIED BUSINESS BROKERTodays Agenda 3. The Market: 23.7 million small businesses in USA Most will transfer ownership in the next ten years There are 3,500 business brokers in the US Business sold through an intermediary such as a business broker sell for 20% more than businesses sold without and intermediary Significantly large market Need for qualified brokersCERTIFIED BUSINESS BROKERModule One The Market 4. A Professional Resource of the ClientSeller Representative (Sell-Side): Maintaining Confidentiality Determining Optimal Pricing Managing Expectations. I have to contact qualify and manage your buyers and provide financing options to complete the transaction. Hell help the seller assess proposals and offers and finally facilitate the closing Preparing the Company for Sale Contacting, Qualifying and Managing Buyers Providing Financing Options Assessing Proposals and Offers Facilitating ClosingTypical Compensation Retainer and Success FeeCERTIFIED BUSINESS BROKERModule One The Role of the Business Broker 5. A Professional Resource of the ClientBuyer Representative (Buy-Side) Presenting Qualified Opportunities Matching opportunities with criteria Performing preliminary due diligence Providing Introductions to Financing Sources Presenting Offers to Sellers Participating in Negotiations Assessing Counteroffers Mediator Facilitating ClosingTypical Compensation - Success FeeCERTIFIED BUSINESS BROKERModule One The Role of the Business Broker 6. A Professional Resource of the ClientDual Representative Facilitator No Agency Relationship Must be disclosed to both parties Unusual to have a true dual representation More typical Agent of Seller Advisor to Buyer to the extent it is advantageous to the SellerTypical Compensation - VariesCERTIFIED BUSINESS BROKERModule One The Role of the Business Broker 7. Franchise or Independent Both have advantages and drawbacks which course is selected is largely dependant upon the individual.CERTIFIED BUSINESS BROKERModule One -- Franchise of Independence 8. Advantages of a Franchise Quick to market Access to experienced brokers Documents prepared and battle-tested Immediate database of buyers Forms and licenses already in place May be easier to exit Disadvantages of a Franchise Franchise may take a cut Branding may be lostCERTIFIED BUSINESS BROKERModule One Franchise or Independent? 9. Advantages of Independence Retain a larger portion of the income Totally independent business judgment You get all the goodwill Disadvantages of Independence Higher startup cost No access to experienced knowledge base Building database from scratch Need to develop forms, checklists and documents Longer Ramp-up PeriodCERTIFIED BUSINESS BROKERModule One Franchise or Independent? 10. Income Expectations 65% report incomes of > $100,000 annually Scalable business >$500,000 annually not unusual Employed business brokers earn approximately $80,000 annually.Eat What You KillCERTIFIED BUSINESS BROKERModule One Income Expectations 11. The Role of the Business Broker CERTIFIED BUSINESS BROKER BEST PRACTICES The Most Challenging Globally Recognized Business Training & Certification Programs