24 Aug Comprehensive Business Review: The Basics
In our webinar on August 20th, we covered some of the key essentials that business brokers need to know to create an excellent CBR. Panelist Jim Parker took the time to extensively outline his approach to crafting the kind of CBRs that get noticed and help businesses get sold. Parker is the Founder/Owner of Boss Group International and current Chairman of the Business Brokers of Florida (BBF).
A CBR, or comprehensive business review, basically outlines all the key details of given business. Typically, a CBR contains everything from financial information on a business and its competitors to the price the business is being offered for and a range of historical data. In Parker’s view, the CBR is absolutely critical. That means considerable time and effort should be put into its creation.
For Businesses Both Small and Large
For Parker, there is simply no other option. A CBR must be created for every business. Regardless, of whether a business is a $50,000 business or is being sold for millions of dollars, it must have one. Obviously, it doesn’t make sense to invest the same amount of time and effort into the creation of CBR for a $50,000 business as it does for a $3 million-dollar business. But Parker believes that each and every CBR should be professional. Let’s look at what you should be looking to achieve.
Grab a Buyer’s Attention
A CBR isn’t simply a collection of facts and figures. There is no doubt, facts and figures play a key role. A lot of information must be conveyed. But a good comprehensive business review goes much deeper. It should grab a buyer’s attention. In short, you want buyers to walk away feeling a bit wowed.
Elevate the Business
Another essential element to consider is that the business should be elevated. Or as Parker states, “A really good CPR will take the business to a whole new level. Buyers will look at the business in a completely different manner.”
A good CBR doesn’t just do a good job of framing the business. It should also show a concern for presentation. Achieving a high level of presentation will serve to elevate the business above the competition. It is important for business brokers to remember that they may be competing against many other businesses, and those businesses also have their own CBRs as well.
Include Educational Components
A third element that Parker believes should be in a good CBR is an educational component. Or as Parker stated, “A couple of spreadsheets on financials and a link to the website, doesn’t really tell the whole story of the business. In creating the CBR, you’re able to get the whole story across to a prospective buyer. You can educate them and get them really excited about the business and taking the next step.”