Hey Biz-Buyers,

Welcome to this week’s Boring Business Brief, where we share some of the best insights, tips, and stories from inside our educational biz-buying community.

Today we’ve got a quick-hitting lineup of tactical resources and conversations, entertaining biz-buying links, and even a sprinkle of drama. But first…

👉 Ever wondered WHY we do all this? You can now hear directly from Codie on everything our private community is about, who it serves, the value it provides, and why it’s as relevant as ever... all in one awesome new video.

Check it out now or bookmark it for later. Then, come back here for this week’s good stuff…

Today, in 5 minutes or less:

✔️ Yikes: Biz-broker drama (and what to learn from it)

✔️ In the weeds: Approaching brokers about seller financing

✔️ Buyer advice: Why you should tap into your gut for guidance

✔️ On the fence: A relatable question about industry events

✔️ 5 links from the week in biz-buying

1. Yikes: Biz-broker drama (and what to learn from it)

If you’re on SMB Twitter, you might have seen this post the other day:

The poster, David, went on to explain that he immediately called the broker to elaborate on his position in a thoughtful, methodical way to try to reason with him.

“I called him immediately, explained my targets for underwriting… I told him I would ignore his email and continue responding to deals as quickly as possible at prices that work for us. If he doesn’t want to submit them, that’s ok.”

He continued, “[The broker] admitted he was just trying to get under my skin a bit but appreciated my quick follow-up call and candor. After shooting the sh*t for a few minutes, we’re back to working on deals today.”

Anyway… Some of our members and facilitators saw this post, and it sparked a conversation. Here’s an abridged version you might find relatable…

Member: “Scrolling through X and stumbled across this… Yikes… We can choose to be professionals or we can choose to get emotional and go full-blown sassy pants. I do like how David elaborates in the thread he was able to use empathy to not flip out and turned the guy around. But sheesh.”

Facilitator: “The broker’s response is unprofessional but the problem of buyers who will never close a deal is very real. This is why we teach presenting yourself to a broker in a way that shows you are knowledgeable and capable of closing a deal. You have the benefit of the course and this community. Most do not. It’s an unfair advantage to help separate yourself from others.”

Member: “I hear ya. Tire kickers must be incredibly annoying and I’m sure it’s gotten worse lately… I wish there was a way to filter out time-waster buyers because they make it harder for real buyers like us too.”

2. In the weeds: Approaching a broker about seller financing

First-time buyers: want a quick tip on addressing the elephant in the deal room (seller financing)? First, check out one member’s question on the subject:

Now, let’s dive into the tip they got in response, which came from the mind of one of our community facilitators (who’s also an established broker)…

“This kind of depends on the down payment and whether the deal is bankable or not. For good, SBA-bankable deals we typically get 70-80% financing from a bank and do 10-20% seller financing behind the bank loan, subordinated 2nd position, and we prep sellers to expect that. If it’s not bankable, we’re totally cool with seller financing and have prepped the seller to expect to finance a big chunk.”

“It’s when you ask for 100% seller financing that brokers think you’re smokin’ crack. So as long as you have a decent down payment, they’ll usually help you pitch it to the seller. Talk to them in advance. And brokers usually get paid on the whole amount of consideration including the seller financing note so it shouldn’t affect their fee.”

3. Buyer advice: Tap into your gut for guidance

Crunching numbers is obviously a hugely important part of small business acquisitions.

Less obvious, though, is crunching your gut…

Here’s one member’s recent experience tapping into their gut for guidance across two deals, along with the outcomes they say it led to:

Deal 1

• Details: “A big deal, lower multiple, big profits, opportunity for seller financing.”
  
  
• Intuition: “My mind was getting seduced by what was on paper, but in the background, my gut kept feeling scattered and uneasy from the start. Deciding not to ignore it any longer and trust it, I backed off the deal.”
  
  
• Outcome: “There was an unexpected sense of relief, but also, what materialized was some potential hidden risks and unexpected broker behavior.”

Deal 2

• Details: “Smaller deal, seemingly higher multiple for the size of the deal, moderate profits.”
  
  
• Intuition: “While on paper, it wasn’t looking like the perfect deal, I had a strong feeling and urge to hold on and keep exploring the deal. Something felt comfortable and grounding about this business. I decided to follow my gut and put my mind to it to explore how this deal could work.”
  
  
• Outcome: “What transpired was a great deal for a first acquisition and enough profit to sustain a first-phase acquisition growth strategy. The deal feels right and so far deserves a ‘f*ck yeah’ credential.”

Bottom line: this member says biz-buyers must listen to their intuition. Doing so helps them spend time more effectively, spot diamonds in the rough, and avoid business blunders.

4. On the fence: A relatable question about industry events

Recently, one member (who’s interested in acquiring a fencing business) approached the group with a question about attending industry-specific events as a newcomer or outsider.

“Would it be worth it for me to attend something like this even though right now I am an industry outsider? At first, I thought yes, but I am having trouble imagining how I would even approach people at an industry event to try and find anyone interested in selling.”

Here’s what other members had to chime in:

• Member 1: “Super valuable — a lot of times you need to get into the circle of influence to understand what they do and how they work. Talking to vendors and asking them questions is important. Be curious and ask what made them get into the business. You will get a ton of different answers (people love to talk about themselves). Lastly, mention if they know anyone selling or exiting in the next few months you may be interested in taking the business over.”
  
  
• Member 2: “Yes. Plan your strategy for talking to other current owners and use it as an opportunity to build relationships and possibly even find deals from owners who are starting to think about selling.”
  
  
• Member 3: “I’m looking to acquire a fence company too and would be open to connecting. I think attending something like this would give you a competitive edge. You could find out ways other owners have monetized, learn new tricks of the trade, and build relationships. Go in and be a sponge 🧽”

5 links from the week in biz-buying:

👔 Hilariously blunt advice on being a biz-buyer with a “white collar” background

📘 In memory of Charlie Munger, check out this awesome interactive ebook

🧠 Two powerful truths that can have incredible results for SMB’s…

📉 Interesting takes on “the worst thing you can do to a newly acquired SMB”

😲 A popular Reddit thread on how to tell an employee that they suck…

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