21 Jul Three Key Facts You Need to Know about the Industry
In our recent webinar, famed founder of Robbinex®, Doug Robbins, joined us for a look at the future of the Business Brokerage industry and some key points about the future. Mr. Robbins brings with him a wealth of invaluable information on the topic, as he founded Robbinex® in 1974. In the subsequent decades, Mr. Robbins has completed 1000+ assignments and has expertise in everything from mergers and acquisitions to valuations and a great deal more.
1. The World is Changing
A key point that Robbins wants you to remember is that the world is changing at a very rapid rate. The simple fact is that the rate of change itself has never been faster. As a result, brokers and businessowners alike may be missing just how quickly the world, and their businesses, are evolving, growing, transforming and changing. As Mr. Robbins states, “This exponential growth is not only going to affect your clients, but it’s going to affect you in your practice.”
The COVID pandemic has served to accelerate the forces that were bringing about change. As Mr. Robbins notes, the pandemic caused businesses to fail, changed valuations, and got many business owners thinking about selling.
2. Our Industry is Challenging
We are now faced with a situation where change impacting businesses is not just constant, but also accelerated. Add to this the fact that, as Mr. Robbins notes, “The life expectancy of any new Business Broker/Intermediate is 18 to 30 months. Very few people get past 30 months in this business.”
It quickly becomes clear that Business Brokers and M&A Advisors, especially new ones, must be ready for a challenge when they enter the industry. Those entering the field will need to have working capital. They also should realize that once a business is sold, the entire process must start all over again.
3. A Great Deal is Expected of You
A third major variable that Business Brokers must keep in mind is that Business Brokers and M&A Advisors are expected to know a great deal. Mr. Robbins points out that while you are expected to be a fountainhead of information, there is no professional degree program that equips Business Brokers and M&A Advisors with the foundational elements they need. In short, there is no foundational program like there is for other professions, such as lawyers, accountants, and engineers.
You must be ready to jump in, learn the business, and figure out how to aggregate vast sums of divergent information. Then you must distill this information down into easy to understand and manageable chunks that can be used to persuade buyers and sellers alike.
Mr. Robbins stated, “Everybody’s been going to school to learn how to do what they do, except there’s no university degree for mergers and acquisitions. And yet, you’re expected to know it all. If you’re going to be successful, you can’t know it all.” All of this points to the extreme importance of building a great team and understanding how to properly allocate tasks to trusted team members.