/ Business Brokers Network
“America’s Largest Network of Business Brokers”

January 5, 2010

A Look Forward: What BBN AffiliatesMight Expect During 2010?

First: A Summary of BBN’S Goals & Objectives for the New Year

  • Increased Affiliate attendance at all five BBN Training Conferences.
  • New Emphasis on Affiliates Earning the designation: Certified Business Broker (CBB)
  • New Emphasis on The BBN Proven Process to Marketing & Sell Businesses
  • Increase in Commissions & Fees Earned by BBN Affiliates
  • More Entries onBBN’SFive-StarFeaturedBusinesses for Sale – An ExclusiveWebsite. During 2010 We

Anticipate an Increase in the Number of Five-Star Website Entries to Come From Additional Affiliate Listings That Qualify for Entry on This Exclusive Website

  • More Emphasis on Quality Improvements for BBN Affiliate Prepared Confidential Memorandum (Marketing Book).
  • Renewed Emphasis on Updating Confidential Memorandum (Marketing Book) with Current Data.
  • All 2010 BBN Training Conferences will focus upon teaching and learning the most essential processes andtechniques business brokers need to master in order to become effective business brokers.

What BBN Affiliates Can Expect From BBN Training Conferences During the New Year – 2010!!!

  • BBN Training Conferences: All five 2010 BBN Training Conferences will feature presentations by selected speakers and presenters with new ideas and materials not previously included at BBN Training Conferences.
  • Certified Business Broker (CBB): At the January 2010 Training Conference, a presentation will be made toLee Leney, BBN Affiliate in Spring Branch, Texas, to recognize his achievement of earning the Certified Business Broker (DBB) designation. Congratulations are due Lee from all BBN Affiliates for this important accomplishment!!

We have several other Affiliates that are near completion of the requirements to receive the Certified Business Broker (CBB) designation. All of you will be hearing from BBN soon about these other prospective CBB achievers.

  • Emphasis on Marketing and Selling Businesses: During 2010 BBN will structure all five training conferences toward illustrating how BBN Business Brokers use The BBN Proven Process for Marketing and Selling Businesses most effectively.
  • Increase in Fees and Commissions Earned by BBN Affiliates: During 2010 BBN Affiliates will be able to increase the commissions and fees earned by being fully involved in the following disciplines:
  1. Attending BBN Training Conferences
  2. Learning and following TheBBN Proven Process to Market and Sell Businesses
  3. Locate and list to sell only businesses that produce a cash profit
  4. Be prepared to fully participate in the following:
  • The BBN National Marketing & Referral Program. We expect this program to produce increasing amounts of fees and commissions for BBN Affiliates each month with continued steady growth. Earning the CBB is helpful to BBN Affiliates in this regard.
  • The established BBN Buyer Representation Program(BBN Form 264). BBN projects this function to be a rapidly expanding part of business brokerage, especially for trained BBN Affiliates.
  • BBN’S new Business Plan development program for business owner clients. This program is designed to help business owners’ better planfor the future of their business. For many business owners, a properly developed Business Plan is a first step towards preparing thebusiness to be sold.
  • Quality Improvements for BBN Affiliate Prepared Confidential Memorandum (Marketing Book):

Included in the April, 2010 BBN Training Conference will be specific training about preparing a Confidential Memorandum that is more attractive, reader friendly and effectively helps sell businesses. Our goal for BBN Affiliates is for you to have the very best marketing book used in the marketplace.

BBN Affiliates are welcome to contact any of the following individuals when technical assistance is needed when preparing the “expanded” marketing book with pictures and other information not presented in the E-BIO Version from the Business Brokerage Management System (BBMS). The contacts are as follows:

  1. James Marlar, BBN Affiliate in Birmingham, Alabama (Hallmark Group)
  2. Jeannette Engle, BBN Affiliate in Seattle, Washington office (Union Bay Group)
  3. Ken Beard in BBN’S Dallas office
  4. Tim Tannery in BBN’S Dallas office
  • Quarterly Updated Confidential Memorandum: A current up-to-date Confidential Memorandum(Marketing Book)is an essential part of effectively marketing and selling businesses. During 2010 we will devote time at BBN Training Conferences to teaching and learning more effectively how to keep your business listings current with financial data and other changes within the business to assist your selling efforts.

Think about it: BBN Training Conferences Make BBN Affiliates SmarterBusiness Brokers

2010 Dates for BBN Affiliate Training Conferences

January 26th & 27th

April 6th 7th

June 22nd & 23rd

August 24th & 25th

October 26th & 27th

Note: All Training Conferences during 2010 are scheduled on Tuesdays and Wednesdays

Details on BBN Website – Affiliate Members Area (Conference Info)

Short Agenda for January, 2010 BBN Training Conference

January 26th – 27th

  • Targeting Qualified Buyers
  • Do You Use the BBN Five-Star Website as a Marketing Tool?
  • How Business Owners Benefit When Their Business is Listed on the BBN Five-Star Website
  • Understanding the Marketing Implications of Working Capital Used in the Business
  • Making the Offer To Purchase Work for You
  • Presentations by three guest speakers regarding (1) current financial markets, (2) duties and responsibilities of the closing officer when handling the transfer of ownership for a business and (3) the benefits of using Employee Stock Option Plans (ESOP) to effect the transfer of ownership
  • Business Brokerage Management System (BBMS) – How Does It Work?
  • Update on BBN’S National Marketing Program

*Attendance Certificate: Business Marketing Professional (BMP)*

Make Your Plans to Attend!!

Remember: Learning is a life long process!

Today’s Bottom Line on Business Acquisition Financing:

  1. Money is available on solid deals for qualified buyers.
  2. Some lenders that were active in business acquisition financing have vacated the market.
  3. Lender terms and conditions have grown more strict, but not prohibitive.
  4. In August 2008 the Small Business Administration (SBA) lengthened the pay-back time for business acquisition loans from 7 years to 10 years; an increase in time of almost 43%.This will make buying businesses far easier than before the change.
  1. Lender interest rates on business acquisition loans arestill relative low; almost to the level of 2005 and earlier. The stated SBA rate of 2.75% over the prime rate on December 23, 2009 of 3.25% results in a rate of 6.0%.
  2. By way of reference, today the average 30 year home mortgage rate is the lowest published rate in 38 years, April 1971, slightly over 5%.
  3. Interest rate reduction and the extension of the borrower’s pay back time are major benefits to business brokers selling businesses.
  4. Business brokers can expect more positive news from the Small Business Administration (SBA) in early 2010 as the stimulus program is put into effect. More available money to loan and more motivated lenders.

Some Thoughts to Remember: WORDS to Live By

At the moment of commitment the entire universe conspires to assist you.

By: Johann Wolfgang von Goethe, quoted by Melissa Reliff, President of The Container Store

(When we have made the choice to be clear-thinking and focused, the universe does conspire to assist.

We persevere and succeed.)

Survival precedes success.

By Jim Hess, Chief Executive of Leapfrog HR Executives

(Many impressive/promising organizations, small and large, were not able to persevere long enough

to be around when a difference-making opportunity knocked.)

The skills that bring you to the table don’t keep you at the feast.

By: Karyl Innis, Chief Executive Innis Co.

(It’s often the breakthrough idea that clears a path for important career growth.)

Note: The Sunday, January 3, 2010 issue of The Dallas Morning News devoted two full pages of “WORDS to Live By” compiled by Cheryl Hall, the newspaper’s Business writer from which these quotes were borrowed. We plan to include more of Cheryl Hall’s quotes in future letters to Affiliates.

Summary: Active Affiliate Status Information

To maintain Active Affiliation Status, Affiliates must be actively involved as a Business Broker and participate with BBN as outlined in detail in your Service Agreement.

Please make certain that you are complying with all terms of your BBN Service Agreement, including payment of Service Fees to BBN. BBN Form 501, Sold Business Fact Sheet, is to be completed and submitted to BBN with your payment of applicable service fees for each closed transaction. Service fees are due and payable immediately following close of the transaction.

Keep up your good work and contact us when you have questions or need assistance.

Regards,

Zack Tannery

President

Director of Affiliate Services

Page 1 of 4