What should we know about Business Brokerage and IBBA Canada?
Craig White, president of the IBBA Canada: Business brokerage is emerging as an exciting and highly competitive field in business and commercial real estate brokerage, one that requires specialized knowledge, skill sets and networking capabilities. The International Business Brokers Association (IBBA) is the largest not-for-profit organization for business brokers in the world. Formed in 1984, our international association has more than 2,300 members and provides business brokers with targeted education, networking opportunities, conferences, professional designations, marketing support and recognition programs.
IBBA Canada is the Canadian chapter of the global association, led by a Canadian board of dedicated volunteers who understand our unique marketplace. We have members from coast to coast providing guidance to business owners and prospective buyers and investors in all aspects of the sale of Canadian businesses. Together, our network helps grow healthy economies across Canada by facilitating the transference of small and medium business ownership.
What differentiates the Canadian chapter from the global IBBA organization?
White: Here in Canada we truly have the best of both worlds. We benefit from the extensive learning resources, networking opportunities and marketing support provided by the global IBBA association, as well as some uniquely Canadian assets. IBBA Canada recently launched a new Canadian identity and a new website. The rebrand is an integral part of a marketing strategy aimed at raising awareness of the specialized services business brokers can provide to buyers, investors and sellers of Canadian businesses.
As the Canadian chapter of the world’s largest business broker association, IBBA Canada provides unparalleled access to the people, resources and programs brokers need to be successful. Our relationships with top industry vendors can save members thousands each year, but it’s the education and community support that’s truly invaluable. We are already Canada’s largest professional community of business intermediary specialists and we are growing.
What’s happening in the Canadian business market? How did that lead to the decision to launch a new Canadian identity and website?
White: With an increasing number of Canadian businesses changing hands, the time was right to take IBBA Canada to the next level and establish a distinct identity for the Canadian chapter. With the baby boomer generation looking to transition into retirement and many businesses needing to change their ownership structure or attract new investors following the pandemic, there is a tremendous need for the services of a professional business intermediary. We wanted to showcase our Canadian network and make business owners and prospective buyers and investors aware of the many services a professional business broker brings to the table. We can help with every aspect of the transaction, from establishing value, structuring offers, financial reporting and much more. Simply put, we can make a significant contribution to the outcome of a transaction. Our new website helps buyers and sellers of Canadian businesses understand the services business intermediaries provide and then easily access our membership here in Canada.
What is the role of IBBA Canada in Business Brokerage?
White: IBBA Canada is committed to raising the professionalism of business brokers through specialized education and networking. In today’s business community, the sad reality is that when some business owners retire, they simply close their doors, rather than realizing the value that they have worked so hard to establish. Our organization helps business intermediaries across Canada to develop their skills and better connect with buyers, sellers and investors. An experienced business intermediary is essential to establishing a value for a business and offering professional guidance to bring the transaction to a successful conclusion.
What are some of the specialized skills needed by a successful business broker?
White: While much of the world’s wealth is a byproduct of family-owned businesses, the fact is that most are not actually prepared to sell in a way that will profit the owners for their life’s work. Many owners of family businesses care deeply about the legacy that they built and want it to remain in their family or with someone that will continue it with the same mission, vision, and values. This is often difficult as the owners lack an established succession plan or exit strategy. This is just one of the areas where we can help.
Financial analysis and reporting is another critical step in the transfer of business ownership. All too often when a business owner decides to sell, they soon discover that their lack of financial data represents a major problem. The simple fact is that prospective buyers will scrutinize every aspect of EBITDA (earnings before interest, taxes, depreciation, amortization) when looking at the perceived value of a business.
When the time comes to sell or transfer ownership, providing a good valuation of a business is key to a successful transaction and takes a great deal of knowledge and experience. A number of complex factors must be considered, including the value of intellectual property, products and services, customer diversity, employee ownership interests, supply chains and the lifespan of the business. Our members can assist with any or all of the aspects of the sale of a Canadian business.
How does IBBA Canada help its members grow their skill sets?
White: IBBA Canada offers a wide range of learning support to help its members acquire new skills and raise their level of professionalism. We have an extensive online library of learning resources available 24/7 and we offer targeted live webinars every month. Other assets that increase our members’ knowledge base include our Canadian network directory, industry research and legal updates.
In addition to our regular webinars, there are also learning and networking opportunities in the form of live, in-person events. Recently the annual Canada Day, a full day of Canadian events, was held leading up to the IBBA global conference in Denver, Colo.
How can Canadian real estate professionals find out more or become members of IBBA Canada?
White: The new IBBA Canada website has more information on our association and details on how to apply for membership for brokerages and for individual members.
