New Opportunity for Business Brokers
A New Source Of Revenue For Your Business Brokerage Business!
For a business broker, many prospects want to sell their business but are unrealistic as to the value they can get for their business. Business Brokers want to find and qualify companies that indeed can be sold for what the owner might expect and the market agrees. And, do that as quickly as possible. In reality, many prospects can't sell until they get their business value up.
Many times, that means there is more work to do. Tasks such as systemizing the business, increasing the sales, profit and cash flow of the business need to be done quickly. As a broker, you may be able to increase listings by providing Business Systemization expertise before a business lists for sale or after the business is sold. And, get paid for doing so. Adding this expertise can give you a strong competitive advantage in your market area.
The Right Strategies Increase Business Value ... Fast!
Is it possible that by working on the right strategies you can increase the value of a business in the next few years? For example, a business worth $500,000 today can be worth over $1,000,000 in 3 to 4 years. The same applies for a $2 million dollar company can be worth $4 million.
The following is an example of a company that has a market value of approximately $1.6 million, that by focussing efforts on building the right systems, can increase the market value to over $3.3 million in three years. This is possible with a modest sales growth of only 5% per year.
| Year | Current | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|
| Sales | $3,000,000 | $3,150,000 | $3,307,500 | $3,472,875 |
| Sales Increase | 5% | 5% | 5% | |
| EBITDA* % | 25% | 27% | 28% | 30% |
| EBITDA* | $750,000 | $850,500 | $926,100 | $1,041,863 |
| Multiplier | 2.25 | 2.5 | 3 | 3.25 |
| Business Value | $1,687,500 | $2,126,250 | $2,778,300 | $3,386,053 |
| Increased Value | $438,750 | $1,090,800 | $1,698,553 | |
| Potential Commission to Business Broker @ 10% |
$168,750 | $212,625 | $277,830 | $338,605 |
EBITDA means Earning before Interest, Taxes, Depreciation, and Amortization.
What Strategies Build Business Value?
Fundamentally, every business is a collection of systems that together should produce an intended result, and, the major difference between large successful businesses and small struggling business is that the former has documented systems while the latter doesn't. The problem that Agyl addresses is help the business owner document their systems and reduce the direct role that owner plays in everyday operations. Typically, owners of small companies wear too many hats in the business. They are the Sales Manager, Payroll Manager, Marketing Manager, Customer Service Manager, Installation Manager, and they do all these activities ... Before Lunch. Agyl works alongside the business owner to build the systems so that they can either Delegate, and or Automate these activities.
How Business Brokers Make Money
- 20-30% of consulting fees charged to the client: Our average client value is $12,000-$16,000. We typically charge $3,000-$4,000 per step. Each step takes about a month to complete. Depending upon your participation in the servicing, we'll pay you between 20-30% of that. One client referred a month can generate you over $50,000 in new cash per year.
- Coaching fees. Sometimes clients can't afford the typical monthly project fee. We may coach a client for $995 a month. You'll be paid 20% of that fee.
- And, we'll do all the selling and closing! That's right. You help schedule a webinar with your client and we'll present the webinar, draw up the proposal, close the deal (with the big help of your reference) collect the fees and pay you your portion. We have a great powerpoint presentation that we deliver on Zoom and have been able to close clients long distance with your introduction. If you want to promote a webinar, we can write the promotion. If you want, you can private label the free report and use it to send out to prospective listings and current listings. You can use it to attract new prospects as well!
- BONUS: Those brokers that begin working with us before January 1, 2023 will also have our expertise in helping put the system into place in their brokerage business! No charge! This is a $12,000-$15,000 BONUS. CONTACT US NOW!
Next Step
Take action and fill out the form below for a 30 minute webinar to discuss this unique opportunity.