Business Broker Brief

What are the opportunities you have in place to give buyers a competitive edge?We have a forum for buyers to gather and learn about opportunities in our inside track. For specific buyers, we will find businesses for them that are not on the market. We approach businesses that are not listed to create new opportunities for our buyers.How can you become a business broker?Entrepreneurial DNA is the biggest thing. We prefer someone who has owned a business in the past.A broker need to understand financials. Most of our brokers are good with people and strong communicators. A broker should be able to go on a rollercoaster ride and still smile through the whole thing. 

What is the difference between the person who will buy an independent company and the person who will buy a franchise? A lot of buyers are biased against franchises because they think all franchises are food or auto repair. The people who need immediate cash flow are more likely to buy an up and running business. However, the buyer doesn’t realize they can find an existing franchise that already has cash flow.A franchise has a game plan and playbook. Plus, there’s a lot of support from the franchise itself. However, there is also an agreement to sign and fees associated with them, which is what scares people away. There are pros and cons to both independent companies and franchises.

In this episode:[01:00] The business buyer ecosystem [06:40] The mental and emotional realities that exist when you buy a business [10:30] Tips for thinking about what the business needs [15:30] How business owners can prepare for due diligence [20:25] How to establish a relationship as a broker[22:40] About making your business recession-resistant  [27:30] How to find hidden deals[32:35] Final takeaways Key Takeaways:Most of our buyers are people who are leaving corporate America and looking to buy their own business. Franchises can be more comfortable for new business owners. Franchises already have a playbook and a template. Business owners wouldn’t necessarily have to figure it all out on their own. Business buyers need to know if a franchise or individual business will be a better fit for them. Think about what type of skills the business needs – you may need to retain the owner for a year until you find someone to replace them. Structure your deal so it has recession-resistance. Be honest with yourself and have the right team around you to fill in your gaps. Featuring: Brain Slipka and Chris JonesBrian  SlipkaPrior to becoming chairman and CEO, Mr. Slipka served as senior vice president and senior director and head of TCF Technology Finance and was responsible for incrementally growing and leading the efforts to grow TCF’s technology finance companies in the United States prior to their integration into TCF Capital Solutions. Prior to his nearly 14 years at TCF/Winthrop, Mr. Slipka held sales and leadership roles at PeopleSoft and Oracle, where he was responsible for the largest financial institution accounts, after starting his career at Ernst & Young.Throughout his career as a senior executive, Mr. Slipka began investing in numerous operating companies, eventually forming the framework of today’s Paradygm Equity Partners (analysis and due diligence) and True North Equity Partners (acquisition platform). Over time, and with his own hard-earned capital, he began acquiring controlling interest in operating companies across varied and diverse industries. Today, the combined portfolio of small businesses has revenues in excess of $25 million and 140 employees. Mr. Slipka’s experience includes building a startup, buying existing (including distressed) businesses, selling/exiting businesses, and angel investments in numerous companies, as a limited partner/investor, while serving on the boards of many. He is the owner of multiple types of commercial real estate, inducing retail, multi-tenant, medical office, and commercial.Chris Jones Prior to joining Sunbelt Chris worked in strategic acquisitions for a $400 million subsidiary of a “Fortune 200 Private Company”. He has assisted clients in many industries including: distribution, business services, light manufacturing, outdoor products, consumer services, retail, hospitality and information technology. Mr. Jones is licensed in Minnesota and Wisconsin and is a member of the International Business Broker Association (IBBA) and M&A Source. Chris lives in the Twin Cities with his wife and three children.Chris Jones is a member of Sunbelt Midwest, with offices in the Twin Cities of Minneapolis/St. Paul helping people buy businesses and sell businesses in Minnesota and the greater Midwest area. Sunbelt Midwest agents are licensed Minnesota Business Brokers. Sunbelt Midwest also has business broker offices in Wisconsin and Illinois.

How should sales and marketing teams be evaluated?Most people think sales and marketing teams should be evaluated based on quantity. In reality, these teams should be measured on effectiveness. How do you create effectiveness through marketing that translates into high-quality opportunities for the sales team, so they aren’t wasting efforts? By ensuring upmost effectiveness from your marketing team, your sales team conversion rates will increase.

How important is transparency in the sales department? Transparency is the most important thing out there.There has to be accountability in both the sales and marketing teams.The marketing team needs to provide a certain amount of deal flow. Plus, they need to have the confidence that the sales team will convert the deal flows.Most salespeople are paid based on conversion rates.The best way to become more efficient is to increase conversion rates. You can publish the conversion rates of everybody on the sales team and the marketing team to ensure transparency. 

In this episode:[01:20] Why sales and marketing teams are not aligned  [04:10] Industries that have great sales and marketing integrations  [07:00] How sales and marketing teams can impact the sale of a business [11:10] The communication divide between millennials and baby boomers [16:20] The specific things that can be done for a successful sale [18:55] How marketing and sales teams should be measured [22:00] Business brokers are resources for businesses   [23:55] The types of businesses a broker will work with[25:00] How geographical location will affect the broker’s business [26:55] Final takeawaysKey Takeaways:Sales and marketing teams are working together better in industries that have more technology integration.Sales and marketing teams aligning together have never been more prominent. The medium a broker uses will vary by both industry and geographical area. Marketing and sales teams should be measured by effectiveness rather than quantity. It’s essential to talk with your sales team and understand their issues and inefficiencies. Find ways for your sales team to be more efficient. Figure out a way to improve communication between marketing and salespeople. Meet Brain Slipka and Aaron ThomAaron Thom Aaron Thom is the President of Peak Development. Before starting this company years ago, Aaron worked with Scottrade and Morgan Stanley. He holds his MBA from the University of St. Thomas in Minneapolis and Real Estate broker’s license along with previously holding his Series 7, 63, 65, and 3 investment trading licenses. He has also started and sold multiple successful ventures that were leaders in their respective industries. If anyone expects aggressive results, Aaron does. Brian  SlipkaPrior to becoming chairman and CEO, Mr. Slipka served as senior vice president and senior director and head of TCF Technology Finance and was responsible for incrementally growing and leading the efforts to grow TCF’s technology finance companies in the United States prior to their integration into TCF Capital Solutions. Prior to his nearly 14 years at TCF/Winthrop, Mr. Slipka held sales and leadership roles at PeopleSoft and Oracle, where he was responsible for the largest financial institution accounts, after starting his career at Ernst & Young.Throughout his career as a senior executive, Mr. Slipka began investing in numerous operating companies, eventually forming the framework of today’s Paradygm Equity Partners (analysis and due diligence) and True North Equity Partners (acquisition platform). Over time, and with his own hard-earned capital, he began acquiring controlling interest in operating companies across varied and diverse industries. Today, the combined portfolio of small businesses has revenues in excess of $25 million and 140 employees. Mr. Slipka’s experience includes building a startup, buying existing (including distressed) businesses, selling/exiting businesses, and angel investments in numerous companies, as a limited partner/investor, while serving on the boards of many. He is the owner of multiple types of commercial real estate, inducing retail, multi-tenant, medical office, and commercial.

In this episode: A management team in place is a qualitative aspect.The industry that you’re in – is it growing or shrinking? What does your customer base look like? Is there a lot of concentration in one or two customers? An extensive vendor list will help sell the business.Where are we at in the economy, and how does that impact your business? How can you net the most at the table?Net is what you walk away with at the closing table.It will depend if they are willing to receive payments over time, or if they want it all upfront.Net is related to tax, time, and effort. 

What are the first steps in a conversation about valuation? When we sit down with business owners, we talk about their dream and where they want to go with their business.Then, we start by looking at the current valuation. Many factors go into it, but we start with financial statements.We look at the cash flow that would be available for the new buyer to pay themselves, pay down debt, and have some cushion leftover.The value of the business is also based on qualitative aspects.

In this episode:[01:00] Understanding the importance of a valuation  [02:25] How to have the valuation conversation [05:45] How emotional attachment comes into play[08:50] Why key personnel will drive more value for the business [11:20] Who will pay for the bonus [12:45] When to work with your employees and key employees [15:45] Final takeaways Key Takeaways:Qualitative aspects of buying a business can sometimes be stronger than the quantitative aspects. The buyers will want key personnel in place, and a seller may pay bonuses to ensure their personnel stays in place.Do not say a word to any of your employees or key employees about the sale. The valuation can be comprised throughout the entire process. When sellers try and do it themselves, they don’t realize how much time and effort will go into it.Featuring Brain Slipka and Peggy DeMuseMeet Brian  SlipkaPrior to becoming chairman and CEO, Mr. Slipka served as senior vice president and senior director and head of TCF Technology Finance and was responsible for incrementally growing and leading the efforts to grow TCF’s technology finance companies in the United States prior to their integration into TCF Capital Solutions. Prior to his nearly 14 years at TCF/Winthrop, Mr. Slipka held sales and leadership roles at PeopleSoft and Oracle, where he was responsible for the largest financial institution accounts, after starting his career at Ernst & Young.Throughout his career as a senior executive, Mr. Slipka began investing in numerous operating companies, eventually forming the framework of today’s Paradygm Equity Partners (analysis and due diligence) and True North Equity Partners (acquisition platform). Over time, and with his own hard-earned capital, he began acquiring controlling interest in operating companies across varied and diverse industries. Today, the combined portfolio of small businesses has revenues in excess of $25 million and 140 employees. Mr. Slipka’s experience includes building a startup, buying existing (including distressed) businesses, selling/exiting businesses, and angel investments in numerous companies, as a limited partner/investor, while serving on the boards of many. He is the owner of multiple types of commercial real estate, inducing retail, multi-tenant, medical office, and commercial.Meet Peggy DeMusePeggy has been Sunbelt Business Advisors Broker of the Year or runner-up every year since 2012.Peggy brings a unique perspective from operating at senior levels in both large publicly held companies as well as smaller privately held organizations.  Her career has included finance and tax positions with Ecolab, Sales Leadership position with Ernst & Young and Managing Partner for SALO Finance.  She has also started her own small business, which she built to a profitable position in its first year of operations, and then sold with the assistance of Sunbelt.Peggy is a CPA (inactive) and graduated from the University of St. Thomas with a degree in Accounting and from the University of Minnesota, Carlson School of Business with a Master’s in Business Taxation.  In addition, she is a Certified Main Street Business Broker (CMSBB).Peggy has worked on over 150 transactions in her time at Sunbelt and has expertise in the following industries:  Marketing, Business Services, SAAS and other software and computer services, Printing and Publications, HVAC and Electrical Contractors, General Construction.  She has also sold businesses in the Manufacturing, Transportation, Retail, and Hospitality industries. 

The business brokerage landscape continues to evolve. New brokerage franchisors and new offices are springing up all the time. We are even starting to see 'virtual brokerages' appear on the horizon. This show presents a conversation with the biggest names in the industry, who will share their thoughts and perspectives, as well as their predictions for the future that could roil the entire industry. You’ll hear from BBIC’s CEO Brian Slipka as he talks with Sunbelt Minneapolis President Chris Jones and one of Sunbelt’s most successful brokers, Peggy DeMuse. Learn more and connect directly with one of BBIC’s experts at www.BBICnow.com.

In this episode, you’ll hear from top experts in the industry as they explain the specific 'dos' and 'don'ts' you need to know when exploring your options to either buy or sell a business or franchise. From the financials to the emotions, this episode will help prepare you for one of the most important transactions of your life. BBIC’s CEO Brian Slipka talks with Sunbelt Minneapolis President Chris Jones and one of Sunbelt’s most successful brokers, Peggy DeMuse. They each share their experiences and lessons learned from years in the industry to help you save time and money. Learn more and connect directly with one of BBIC’s experts at www.BBICnow.com.

Ten trillion dollars of small businesses will transition ownership in the next decade. That’s why in this episode, top experts in the industry will break down the macro industry trends and market opportunity as well as what every buyer and seller needs to know about the process. BBIC’s CEO Brian Slipka and Sunbelt Minneapolis President Chris Jones share why it’s so important to consult a broker who knows your industry, is familiar with how to structure business transactions, and can give you peace of mind during one of the most impactful stages of your life. Learn more and connect directly with one of BBIC’s experts at www.BBICnow.com.